Taiwan's largest physical cryptocurrency trading operator (Bitshine Technology) has been reported to be cooperating with a fraud group for money laundering, with the amount involved reaching hundreds of millions, shocking the blockchain community and the Legislative Yuan's Finance Committee. The Financial Supervisory Commission promptly launched the largest-scale virtual asset service provider (VASP) financial inspection action in history, aiming to complete inspections on all 12 VASP operators that have not yet been inspected by the end of this year, and to comprehensively strengthen anti-money laundering and anti-fraud regulations.
Bitshine Technology is suspected of becoming a 'money laundering channel' for a fraud group, with police tracking funds amounting to hundreds of millions.
According to preliminary investigations by the police, Bitshine Technology is suspected of colluding with a fraud group, collecting cash from victims and then converting it into virtual currency to assist in money laundering. It is reported that the fraud group will require victims to purchase specified virtual currencies at Bitshine stores, which is suspected to have been prearranged. The estimated amount involved exceeds hundreds of millions, and the case has drawn significant attention from the Legislative Yuan's Finance Committee.
The largest-scale financial inspection in history has begun, with all 12 VASPs to be inspected this year.
Guo Wenlong, Deputy Director of the Financial Supervisory Commission's Inspection Bureau, stated that in 2025, special inspections will be conducted on 12 VASPs that have not completed financial inspections, marking the largest scale of financial inspections in a single year in history. Key items include anti-money laundering, combating terrorist financing, countering the proliferation of weapons, consumer protection, and fraud prevention, aiming to strengthen the regulatory intensity and transparency of the overall virtual currency industry.
Overview of the current status of VASP operators: a total of 31 registered, with 10 having undergone financial inspections.
So far, 21 VASP operators have completed the financial supervisory commission's anti-money laundering compliance declarations and formal registrations, while another 10 new operators have also submitted applications, totaling 31. Guo Wenlong pointed out that by the end of 2024, financial inspections will have been completed for 10 VASPs, of which 2 have not renewed their VASP registrations, leaving 13 operators that still need to be inspected. On April 28, the Financial Supervisory Commission began an inspection of Bitshine Technology, and the remaining 12 are expected to be fully inspected by the end of the year.
In recent years, there have been continuous deficiencies in financial inspections, with ACE, MaiCoin, and Bito all being fined.
In 2023, the Financial Supervisory Commission conducted financial inspections on the 4 VASPs with the largest business volumes, and in 2024, it inspected 6 more, totaling 10, all of which were found to have deficiencies in anti-money laundering measures. In 2024, the Securities and Futures Bureau of the Financial Supervisory Commission will further impose comprehensive penalties.
ACE (formerly known as Bitshine) received the highest fine, amounting to 1.52 million NTD.
MaiCoin and Bito each received fines of 1.5 million NTD.
Rybit was also fined 1.02 million NTD.
The total fines imposed on the four companies amount to 5.54 million NTD.
Further reading:
The Financial Supervisory Commission announced 4 major deficiencies in VASP financial inspections! 4 exchanges have been fined, and the draft of the cryptocurrency special law will be sent to the Executive Yuan.
Fraud-related operators have been eliminated, and both Bitshine and ACE have lost their qualifications.
Among them, Bitshine Digital Innovation (formerly ACE) was not only fined for financial inspection issues but was also reported to be involved in a fraud case, ultimately failing to complete the VASP registration within the deadline and has now lost its legal operating qualification. Bitshine Technology has become the second VASP operator involved in fraud to face financial inspection; whether it will also lose its qualification remains to be determined pending further investigation by the Financial Supervisory Commission.
The reshuffle of cryptocurrency operators is coming, and financial inspections are becoming the key to regularized regulation.
In response to the fraud controversy involving Bitshine and the continuous exposure of regulatory deficiencies, the Financial Supervisory Commission is gradually incorporating the virtual currency industry into a regular regulatory system, requiring VASP operators to strengthen internal controls and transparency through financial inspections, compliance declarations, and penalty mechanisms. This 'virtual currency rectification campaign' will be a critical turning point for the industry to gain trust and achieve sustainable development.
This article is reprinted with permission from: (Chain News)
'The largest cryptocurrency dealer's money laundering controversy! The Financial Supervisory Commission initiates the largest financial inspection in history, targeting 12 cryptocurrency platforms.' This article was first published in 'Crypto City.'