Taiwan Cooperative Bank explains why it has blocked agreed transfers: The proportion of crypto accounts turning into warning accounts is too high, and it is very difficult to trace fraudulent financial flows.

Two major financial institutions in Taiwan, Chunghwa Post and Taiwan Cooperative Bank, recently announced the suspension of the agreed transfer service for virtual currency platform accounts, which, while strengthening fraud prevention, has also caused inconvenience for users. (Background: Not just Taiwan Cooperative Bank! Various banks are considering 'blocking deposits and withdrawals to exchanges'. How is Taiwan's crypto landscape evolving?) (Additional context: Key points from the public hearing on Taiwan's cryptocurrency special law (Virtual Asset Service Act): Unlicensed operators involved in fraud will face harsher penalties!) Taiwan Cooperative Bank announced on June 5 that it will suspend the agreed transfer service for virtual currency platform deposit accounts, and starting from August 11, it will completely halt the agreed transfer functionality for related accounts. Chunghwa Post terminated the agreed transfer for related accounts even earlier, starting from May 28. Up to 30% of agreed transfer accounts have become warning accounts Recently, Taiwan Cooperative Bank's General Manager Hsu Wei-Wen revealed the reason behind this action: According to internal statistics from the bank, the percentage of accounts with agreed transfers set up for virtual currency platform deposits that have turned into warning accounts is as high as 20% to 30%. This is also the main reason why Taiwan Cooperative Bank decided to suspend this service. Hsu stated that the most difficult type of fraud cases to trace now involves virtual currencies, such as Bitcoin and USDT. Once the money flows overseas, the difficulty of tracing becomes considerably high. As for complaints from community users expressing inconvenience, Hsu responded that as long as they are customers of Taiwan Cooperative Bank and have linked their foreign currency deposit accounts to the MaiCoin platform, they can still apply for agreed transfers after real-name verification confirming they are the same person. Additionally, non-agreed transfers can still be conducted, but the limits have been significantly reduced. Users looking to make large remittances will need to handle this in advance. The special law is progressing, but reality is declining The Financial Supervisory Commission is currently advancing the draft of the Virtual Asset Service Act, while the Central Bank is simultaneously calling for strengthened management of stablecoins. Operators primarily involved in exchanges and those focusing on stablecoin businesses are both advancing in their respective directions; however, banks are pulling back on their financial connections with cryptocurrency exchanges to 'prevent fraud', making it even harder for exchanges to conduct business. Extended Reading: Key points from the public hearing on Taiwan's cryptocurrency special law (Virtual Asset Service Act): Unlicensed operators involved in fraud will face harsher penalties! Banks have their own struggles; they must not exceed the warning account indicators, and if they find that the percentage of warning accounts involved in transactions with cryptocurrency exchanges is too high, to avoid increasing internal costs and warnings from the Financial Supervisory Commission, banks have the autonomy to block agreed accounts with exchanges. However, this reality makes exchanges, or any crypto startups involved in financial services, anxious: banks are considering shutting off liquidity as a measure to block fraudulent flows, with fraud being their biggest concern; the result is a gradual strangulation of cryptocurrency services. The author cannot help but sense a premonition: Will banks swallow all local crypto services? Banks can issue stablecoins, can custody cryptocurrencies, and in the future may also launch crypto trading services; aren't existing crypto operators only going to find it increasingly difficult? The outline of cooperation between crypto financial flows and traditional finance seems unable to clarify before the third reading of the special law. Perhaps foreign investment landing will determine whether Taiwan's crypto is moving towards global liquidity or trapped in a closed sandbox with low-risk financial flows. Related Reports: TSMC's first batch of wafers shipped from Arizona! NVIDIA AI chips need to return to 'Taiwan's home' for packaging Taiwan's meme coins accelerate their mainstream appeal) Gold banknotes JMONEY launched on Pionex, Ourbit, and will land on HiBT on June 14 The American Chamber of Commerce warns in a white paper 'Taiwan is facing power shortages': Unstable energy supply threatens semiconductor AI development. "Taiwan Cooperative Bank explains why it has blocked agreed transfers: The proportion of crypto accounts turning into warning accounts is too high, and it is very difficult to trace fraudulent financial flows." This article was first published on BlockTempo (the most influential blockchain news media).