News View Non-AMP

Taiwan Cracks Down on Digital Asset Fraud with 4 New Laws

Published by
Qadir AK

Taiwan’s Executive Yuan has approved four new laws. These laws aim to combat fraud and enhance anti-money laundering measures. 

An official post released in a local newspaper ‘abmedia’ titled “New Four Laws to Combat Fraud” is designed to strengthen the government’s ability to tackle a wide range of criminal activities, particularly in the digital asset space. 

Understanding the New Legislation

These laws, collectively known as the “New Four Laws to Combat Fraud,” encompass four key areas: the Fraud Crime Harm Prevention Regulations, the Money Laundering Prevention Law, the Technology Investigation and Security Law, and the Communications Security and Supervision Law.

Together, these laws provide a robust framework to address fraud and money laundering, reflecting Taiwan’s dedication to maintaining financial integrity.

Strengthening Anti-Money Laundering Measures

The four new laws that have been implemented are not absolute. 

A significant focus of the legislative overhaul is the revamped Money Laundering Prevention Law, which places greater scrutiny on virtual asset service providers (VASPs) and introduces stricter penalties for non-compliance.

The updated registration requirements, special money laundering crimes, and domestic and foreign currency dealer regulations are three unique amendments to the Money Laundering Prevention Law. 

First and most important are the registration requirements. If any virtual asset service providers fail to comply with the required registration, they may face penalties of up to 2 years in prison. This strict registration compliance ensures that all entities dealing with virtual assets must comply with AML regulations.

Cracking down on money laundering

The newly amended law also mentions some special money laundering crimes. A special category for money laundering with virtual asset accounts involved and third-party payment accounts has been mentioned in the law. Prison sentences range from 6 months to 5 years, with fines up to NT$50 million, and wait for those who will be found guilty of using these accounts for money laundering.

Global Compliance

The updated law has set strict compliance rules that must be followed by both domestic and foreign currency dealers operating in Taiwan so that their compliance with the anti-money laundering laws is checked. The rule says foreign currency dealers must complete appropriate company registration or establish branches in Taiwan.

A Commitment to Oversight

The Financial Supervisory Commission’s Deputy Chairman Qiu Shuzhen discussed the FSC’s important role and its commitment to implementing strict supervision and internal control, which includes enhanced transparency. Twenty-five virtual currency exchanges completed legal compliance statements for money laundering prevention.

These laws signify Taiwan’s firm stance against financial malpractice and its dedication to market protection. By imposing stricter regulations, Taiwan aims to create a safer environment for virtual asset exchange, fostering legal protection and market stability.

In Conclusion

Taiwan’s adoption of the “Four Laws to Counter Fraud” sets a significant precedent in the global fight against financial misconduct. Its stringent measures serve as a model for countries grappling with similar challenges, offering a roadmap to mitigate risks associated with digital asset transactions.

Also Read How the laws & regulations affecting blockchain technology and cryptocurrencies, like Bitcoin, can impact its adoption.


Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Recent Posts

LIBRA Memecoin Scandal? Founder Davis Calls LIBRA a “Memecoin,” Not an Investment

A new court filing in the U.S. has revealed a surprising twist in the LIBRA…

July 26, 2025

Pi Network News: Founder Hints at Support for More Cryptocurrencies

Recently, the Founder of Pi Network, Nicolas Kokkalis, allegedly announced that Pi Wallet may introduce…

July 26, 2025

Best Crypto Presales to Ride the Dip as XRP and Dogecoin Prices Fall

After this month’s disorienting mix of bullish momentum and widespread profit-taking, the crypto market has…

July 26, 2025

BNB Price Analysis: Will Binance Coin Break Past $1,000 Next?

BNB continues to attract attention after surging to a new all-time high (ATH) of $809…

July 26, 2025

SharpLink Preps Big ETH Buy with $145M Transfer and New BlackRock Co-CEO

SharpLink is making bold moves to ramp up its Ethereum treasury. According to data from…

July 26, 2025

XRP Tumbles After Hitting $3.66 High — Is a Recovery in Sight?

Since July 22, the XRP market has declined by 13.65%, with selling pressure intensifying. Despite…

July 26, 2025