🌎 Taiwan Cracks Down on Unregistered Crypto Dealers

Taiwanese Authorities Crack Down on Unregistered Virtual Currency Dealers

Taiwanese law enforcement has arrested a 30-year-old man, Chen, for operating as an unregistered virtual currency dealer in Kaohsiung. Chen was found to be using Facebook groups to facilitate cryptocurrency trades and arrange in-person transactions, exchanging Tether (USDT) for cash.

Despite the newly enforced anti-money laundering regulations, Chen reportedly completed hundreds of transactions in less than a month, selling 400,000 USDT and profiting NT$800,000. Authorities seized computers, mobile phones, cash counters, and safes as evidence during the arrest on December 24.

Registration System for Virtual Asset Service Providers

This marks the first case of its kind since the Virtual Asset Service Provider registration system became effective on November 30, 2024. The system, mandated by the Money Laundering Prevention Act, prohibits unregistered entities from offering virtual asset services.

To ensure compliance, the Financial Supervisory Commission emphasizes that only 26 registered entities are authorized to provide virtual asset services. Engaging in illegal currency trading can result in penalties, including up to two years in prison or fines of up to NT$5 million.

Unregistered Coin Dealer Studio Raided

In a separate raid, authorities targeted an unregistered “coin dealer studio” on Chengdu Road in Taipei. The operation, run by clerks surnamed Lin and Liu, was found to be selling USDT at a 10% premium. Investigations revealed that the studio generated over NT$200 million in sales last month, yielding a profit of NT$20 million, or roughly $600,000.

Employees at the studio were reportedly paid NT$40,000 monthly. Authorities have increased surveillance of online platforms to identify illicit operations and are urging the public to transact only with approved providers.

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