Taiwanese Man Arrested For Using Social Media Platform To Run Illegal Cryptocurrency Trading Business

A Taiwanese man, only identified as Chen, became the first casualty of the newly enforced anti-money laundering regulations in Taiwan.

The new anti-money laundering (AML) regulations, which came into effect on November 30, 2024, required virtual asset service providers (VASPs) to complete AML compliance registration to offer virtual asset services in Taiwan.

Despite the new law, Chen reportedly continued to use Facebook groups to solicit cryptocurrency trades and arrange in-person transactions where he exchanged Tether for cash.

It was reported that Chen completed hundreds of transactions and sold 400,000 USDT, earning approximately $800,000 New Taiwan Dollars.

Chen was arrested on Christmas Eve, and his computers, mobile phones, cash counters, and safes were all confiscated as evidence.

In a separate raid, Taiwanese authorities targeted an unregistered "coin dealer studio" on Chengdu Road in Taipei. The operation, run by clerks surnamed Lin and Liu, was found to be selling USDT at a 10% premium.

Investigations revealed that an illegal cryptocurrency trading operations with transactions exceeding $200 million in sales last month, yielding a profit of $20 million New Taiwan Dollars, or roughly $600,000. Employees at the studio were reportedly paid NT $40,000 monthly.

Only 26 entities were registered to provide virtual asset services in Taiwan, according to the data from The Financial Supervisory Commission. Police have issued a warning that individuals and businesses conducting illegal cryptocurrency trading without proper registration can face penalties of up to two years in prison, or a fine of up to $5 million New Taiwan Dollars.

Authorities have also increased surveillance of online platforms to identify illicit operations and are urging the public to transact only with approved providers.