Recently, local exchanges in Taiwan have been reported to be involved in fraud and money laundering cases, prompting the Financial Supervisory Commission (FSC) and the Virtual Currency Operators Association to call for a re-investigation. (Background: The local exchange 'Bishang Technology' is implicated in fraud exceeding 100 million, with three individuals, including the person in charge, being ordered to be detained) (Supplementary background: Two founders of XREX are involved in money laundering of 410 million NTD; why was the prosecution suspended? Complete timeline and official responses released) Recently, the largest chain physical store exchange in Taiwan, 'Bishang Technology', has been reported to be suspected of colluding with a fraud group for money laundering, which has attracted significant attention from the FSC. During a routine press conference on the 1st, the FSC announced that it will comprehensively expand financial inspections of Virtual Asset Service Providers (VASP) this year. The FSC's Inspection Bureau Deputy Director Guo Wenlong clearly stated during the routine press conference that after completing financial inspections of 10 VASP operators last year (from the beginning of 112 to the end of 113), this year, an additional 12 operators will undergo special financial inspections, with plans to complete all verification work by the end of the year. This expansion of financial inspections is larger than before, demonstrating the determination of the regulatory authorities to strengthen supervision. It is worth noting that FSC Chairman Peng Jinlong stated that the involved Bishang Technology had sent personnel for inspection on April 28, so it is not included in the list of these 12 operators. Guo Wenlong further explained that as of the end of March this year, among the 26 operators that had previously conducted compliance declarations under the Money Laundering Prevention Act, 21 have re-applied for registration with the FSC. The 12 operators expected to be inspected this time mainly consist of those who have not undergone financial inspections and newly registered operators. The focus of this VASP special financial inspection will concentrate on five core areas: Anti-Money Laundering (AML): Checking whether operators effectively implement money laundering prevention regulations. Combatting the Financing of Terrorism (CFT): Evaluating measures taken by operators to prevent the financing of terrorism activities. Counter-Proliferation of Weapons (CPF): Verifying whether operators comply with regulations to prevent the financing of the proliferation of weapons of mass destruction. Consumer Protection: Assessing whether operators have adequate mechanisms to protect customer rights. Fraud Prevention Measures: Evaluating operators' capabilities in preventing and handling fraud incidents. The FSC emphasizes that all operators engaged in virtual asset business within Taiwan must complete compliance registration under the Money Laundering Prevention Act with the FSC. Chairman Peng Jinlong previously stated that after the Bishang Technology incident, future reviews of VASP’s licenses and operational qualifications will be stricter to improve market order and reduce related financial risks. Virtual Currency Industry Association Statement Today (2nd), the Republic of China Virtual Currency Industry Association also publicly stated regarding this matter: In response to the recent news events concerning VASP members that have drawn social attention, our association feels a significant responsibility. Our primary goal has always been to promote the healthy development of the industry and protect user rights, urging member companies to implement self-discipline, cooperate with regulations, comply with anti-money laundering and counter-terrorism financing laws, and actively cooperate with national fraud prevention policies. Our association will continue to work closely with regulatory authorities to jointly establish a more robust regulatory system, aiming to enhance public confidence and trust in this emerging virtual currency industry. While encouraging innovation, we strive to create a safe, transparent, and trustworthy industry environment. Related Reports ACE Exchange Announcement: Due to failure to complete registration, 'VASP business suspended', users angry and preparing to sue. FSC New Regulations: 70-80% of customer assets of VASP in Taiwan must be stored in cold wallets. "The FSC emphasizes 'Taiwan exchanges must thoroughly investigate money laundering' and expand financial inspections; the association urges compliance with regulations" this article was first published on BlockTempo (the most influential blockchain news media).

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