Another case of penalties for virtual currency operators: San Chuan Tong Zhen was fined 1.5 million new Taiwan dollars by the Financial Supervisory Commission for violating the Anti-Money Laundering Act.

With the rapid development of the virtual asset market, the Taiwan Financial Supervisory Commission has continuously upgraded its regulatory efforts against money laundering for relevant operators. San Chuan Tong Zhen Co., Ltd. was fined 1.5 million new Taiwan dollars yesterday for multiple KYC and transaction monitoring failures, becoming the latest case. Over the past year, more than six operators have been fined for similar violations.

San Chuan Tong Zhen was fined 1.5 million new Taiwan dollars by the Financial Supervisory Commission.

On July 29, the Securities and Futures Bureau of the Financial Supervisory Commission announced that San Chuan Tong Zhen Co., Ltd. (operating BitStreetX Exchange) was fined 1.5 million new Taiwan dollars for violating Articles 8, 10, and 13 of the Anti-Money Laundering Act. This penalty originated from a project inspection at the end of 2024, exposing deficiencies in customer review, transaction monitoring, and record preservation.

（1）Measures for customer review have not adhered to regulations by failing to obtain the names of senior management personnel of corporate clients, not verifying the wealth and source of funds of high-risk clients, and not assessing whether the clients have sufficient financial capacity, thus approving increases in their New Taiwan Dollar deposit and withdrawal limits. （2）During the transaction continuous monitoring, the registered IP addresses of clients were not included in the monitoring scope as required, and there were issues with retaining the closing dates of suspicious transaction alert cases. （3）In recording and preserving operations, there were discrepancies between the transaction records in the accounting system and the actual situation.

Review of past cases: Observing Taiwan's VASP efforts towards compliance through multiple fines.

San Chuan Tong Zhen is not the only virtual asset service provider (VASP) fined recently; below is a review of the multiple fines issued by the Financial Supervisory Commission.

He Ya Digital Technology was fined 1.5 million yuan.

In July this year, He Ya Digital Technology Co., Ltd. (operating HOYA BIT Exchange) was fined for violating the Anti-Money Laundering Act, with deficiencies including insufficient risk assessment of customers, inadequate review of high-risk customers and account closure, failure to report and investigate suspicious transactions, and incomplete record retention.

Lian Ke Company was fined 1.02 million yuan.

In July this year, Lian Ke Co., Ltd. (operating XREX Exchange) was fined for violating the Anti-Money Laundering Act and the Personal Data Protection Act, with deficiencies including failure to strengthen reviews of high-risk customers, not re-verifying the identities of users reported for fraud to the bank, and storing user personal data in external company systems without security measures.

Pioneering Digital was fined 500,000 yuan.

In July this year, Pioneering Digital Technology Co., Ltd. (operating ZONE Wallet) was fined for violating the Anti-Money Laundering Act, with deficiencies including failure to properly review high-risk customers, not verifying the source of funds, and improper handling of gray list cases.

(Three virtual currency operators violated the Anti-Money Laundering Act, with the Financial Supervisory Commission imposing fines exceeding 3 million new Taiwan dollars.)

Ace Digital was fined 1.52 million yuan.

In July last year, Ace Digital Innovation Co., Ltd. (operating ACE Exchange) became the first to be fined for violating the Anti-Money Laundering Act, with deficiencies including failure to conduct proper customer reviews, ineffective transaction monitoring, incomplete record retention, and improper personal data management. This case also officially opened a new era of regulatory compliance for VASP under 'project inspections and penalties.'

Modern Wealth Technology was fined 1.5 million yuan.

Modern Wealth Technology Co., Ltd. (MaiCoin) was fined for violating the Anti-Money Laundering Act, with deficiencies including failure to conduct proper customer reviews, inadequate transaction monitoring, incomplete transaction records, and improper handling of abnormal transactions.

Bito Technology was fined 1.5 million yuan.

Bito Technology Co., Ltd. (Bito) was fined for violating the Anti-Money Laundering Act, with deficiencies including inadequate customer review, incomplete transaction monitoring, data preservation omissions, and improper handling of suspicious transactions.

(Taiwan Financial Supervisory Commission strikes again! MaiCoin and Bito fined 1.5 million new Taiwan dollars each for deficiencies in anti-money laundering.)

The Financial Supervisory Commission has consistently stated that it will maintain a certain frequency of inspections and penalties in the future to ensure that VASP operators in Taiwan can meet international anti-money laundering standards and FATF requirements, avoiding systemic risks.

From fines to transformation, compliance in the virtual currency industry has become a regulatory focus.

As demand for virtual assets in the financial system rises, compliance has become a necessary condition for VASP. The Financial Supervisory Commission has continuously taken action, revealing the current shortcomings of the industry and pushing various platforms to accelerate the establishment of risk control systems and improve KYC and review processes. The future of Taiwan's virtual asset market is expected to develop towards a more transparent, secure, and sustainable direction.

This article adds another case of penalties for virtual currency operators: San Chuan Tong Zhen was fined 1.5 million yuan by the Financial Supervisory Commission for violating the Anti-Money Laundering Act. It first appeared in Chain News ABMedia.