Taiwanese authorities recently made a significant arrest in the world of virtual currency trading. A 30-year-old man named Chen, operating as an unregistered virtual currency dealer, was apprehended in Kaohsiung for violating anti-money laundering regulations. Chen had been utilizing Facebook groups to facilitate cryptocurrency trades and conducting in-person transactions where he exchanged Tether (USDT) for cash.
Despite the newly enforced laws, Chen managed to complete hundreds of transactions within a short period, selling 400,000 USDT and making a profit of NT$800,000. His illegal activities came to an end when police arrested him on December 24 and seized various pieces of evidence including computers, mobile phones, cash counters, and safes.
This incident marks the first case of its kind since the implementation of the Virtual Asset Service Provider registration system on November 30, 2024. This system, mandated by the Money Laundering Prevention Act, prohibits unregistered entities from offering virtual asset services.
In a separate operation, authorities targeted an unregistered “coin dealer studio” on Chengdu Road in Taipei. The studio, operated by individuals named Lin and Liu, was selling USDT at a 10% premium. Investigations revealed that the studio had generated over NT$200 million in sales last month, resulting in a profit of NT$20 million. Employees at the studio were reportedly earning a monthly salary of NT$40,000.
The Financial Supervisory Commission has emphasized that only 26 registered entities are authorized to provide virtual asset services. Engaging in illegal currency trading can lead to severe penalties, including up to two years in prison or fines of up to NT$5 million. Authorities have ramped up surveillance on online platforms to detect illicit operations and are urging the public to only transact with approved providers.
It is crucial for individuals involved in virtual currency trading to adhere to the regulations set forth by the government to avoid facing legal consequences. By staying informed and conducting transactions through authorized channels, the integrity of the virtual currency market can be preserved.