Taiwan's Largest Cryptocurrency Money Laundering Scandal! Financial Supervisory Commission Launches Largest Ever Inspection of Crypto Platforms
A major money laundering controversy has emerged in Taiwan's cryptocurrency circle! The leading virtual currency service provider 'Bixiang Technology' has been exposed for colluding with a fraud group, allegedly assisting in laundering billions of dollars through physical stores. This has triggered a thunderous response from regulators—the Financial Supervisory Commission announced that it will launch the largest-ever special inspection of VASPs (Virtual Asset Service Providers) in Taiwan, with comprehensive inspections of the remaining 12 uninspected platforms on the island to be completed within the year.
According to preliminary investigations by the authorities, the fraud group is suspected to have colluded with Bixiang Technology's stores, guiding victims to exchange cash for designated virtual currencies, forming a complete money laundering chain. The scale of the funds involved has reached billions, and the case has entered the judicial investigation stage. Deputy Director of the Inspection Bureau of the Financial Supervisory Commission, Guo Wenlong, stated that this inspection will focus on five core areas: anti-money laundering, combating terrorist financing, consumer protection, and aims to comprehensively purify the industry ecosystem.
Data shows that there are currently 31 registered VASP operators in Taiwan, of which 10 have completed inspections, and 2 have not renewed their qualifications due to violations. Following the sudden inspection of Bixiang Technology at the end of April, the remaining 12 platforms will all undergo 'penetrating' regulatory checks by the end of 2025. It is noteworthy that over the past two years, the Financial Supervisory Commission has issued 'full fines' to the 10 inspected platforms, with leading companies such as ACE and MaiCoin accumulating fines exceeding 5.54 million New Taiwan dollars, and the original ACE platform has directly lost its operating qualifications due to involvement in fraud.
With Bixiang Technology becoming the second compliant platform investigated for fraud, Taiwan's cryptocurrency industry is facing an unprecedented regulatory storm. Analysts point out that the Financial Supervisory Commission is promoting the industry's transition from reckless growth to compliant development through regular inspections, strict legal compliance declarations, and heavy penalties. This 'virtual currency rectification action' is not only a strong deterrent against money laundering crimes but will also reshape the market trust system, becoming a key turning point for the industry to move towards sustainable development.
