Taiwanese authorities have recently made a significant arrest in the world of virtual currency trading. A 30-year-old man named Chen, operating as an unregistered virtual currency dealer, was apprehended in Kaohsiung for violating anti-money laundering regulations.
Chen utilized Facebook groups to facilitate cryptocurrency trades and conducted in-person transactions, exchanging Tether (USDT) for cash. Despite the newly enforced law, he managed to complete hundreds of transactions within a short period, selling 400,000 USDT and making a profit of NT$800,000. On December 24, he was taken into custody, and authorities seized various pieces of evidence such as computers, mobile phones, cash counters, and safes.
This incident represents the first case of its kind following the implementation of the Virtual Asset Service Provider registration system on November 30, 2024. The system, mandated by the Money Laundering Prevention Act, aims to prevent unregistered entities from offering virtual asset services.
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Cracking down on unregistered coin dealers
Another raid targeted an unregistered “coin dealer studio” on Chengdu Road in Taipei. The studio, operated by individuals named Lin and Liu, was found selling USDT at a 10% premium. Investigations revealed that the studio generated over NT$200 million in sales last month, resulting in a profit of NT$20 million. Employees at the studio were reportedly earning NT$40,000 monthly.
The Financial Supervisory Commission has stressed that only 26 registered entities are authorized to provide virtual asset services. Engaging in illegal currency trading can lead to severe penalties, including imprisonment for up to two years or fines of up to NT$5 million.
Authorities are ramping up surveillance efforts on online platforms to detect illicit operations and are urging the public to only transact with approved providers.
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