Taiwan’s Legislative Yuan passed the “Fraud Crime Prevention and Control Act” amendment today (30th) in its third reading, significantly increasing penalties for virtual asset-related fraud behaviors, with a maximum fine of 100 million NT dollars, and simultaneously authorizing financial institutions to accelerate blocking suspicious transactions.
(Background: The Taiwanese government holds (confiscates) 210 Bitcoin! Over 2,000 ETH, nearly 300 BNB… totaling over NT$1.3 billion)
(Additional background: Taiwan’s Central Bank once again says No to Bitcoin reserves! Responds to legislators’ “research report” refusing to follow the US and Czech experiments)

Table of Contents

• Tiered Penalty System: Up to 100 million NT dollars
• Strengthening the Fund Flow Blocking Mechanism
• Victim Protection and Leniency for Self-Reporting
• Warnings to the Cryptocurrency Industry

The Taiwanese Legislative Yuan today passed the “Fraud Crime Prevention and Control Act” amendment in its third reading. This is the most comprehensive legislative revision against fraud crimes in recent years, especially incorporating regulations on virtual asset-related scams, demonstrating the government’s focus on cryptocurrency scam issues.

Tiered Penalty System: Up to 100 million NT dollars

The most notable aspect of this amendment is the significant increase in fines, adopting a three-tier progressive system:

For fraud amounts exceeding 1 million NT dollars, imprisonment of 3 to 10 years; exceeding 10 million NT dollars, imprisonment of 5 to 12 years; exceeding 100 million NT dollars, imprisonment of 7 years or more, or life imprisonment.

This move is seen as a direct response to the frequent large-scale cryptocurrency scam cases in recent years, including fake investment platforms, fake exchanges, and other scams, with victims losing tens of millions or even over a hundred million NT dollars.

Strengthening the Fund Flow Blocking Mechanism

The amendment also authorizes financial institutions to proactively suspend accounts and report to the police upon discovering suspicious transactions, speeding up the blocking of scam-related fund flows. This regulation is expected to have a tangible impact on cases involving virtual assets, as such cases often involve rapid transfer of funds overseas.

The Ministry of Justice stated that in the past, financial institutions often missed critical interception opportunities due to insufficient legal authority when handling suspected scam accounts. This amendment clearly grants legal basis to financial institutions, potentially greatly increasing the rate of scam fund blocking.

Victim Protection and Leniency for Self-Reporting

The amendment also includes provisions for victim protection, stipulating that members of scam groups who turn themselves in within six months after the crime and reach reconciliation with victims can receive reduced sentences. This aims to encourage lower-level members of scams to come forward and assist in apprehending core members.

Warnings to the Cryptocurrency Industry

For the cryptocurrency industry, this amendment sends a clear signal: the government is intensifying efforts to combat scams using virtual assets as tools. Industry insiders point out that legitimate virtual asset operators should actively cooperate with government regulation, implementing KYC (Know Your Customer) and AML (Anti-Money Laundering) standards to distinguish themselves from scam activities.

As Taiwan’s Virtual Asset Association is expected to be established in the first quarter of next year, coupled with this recent amendment to the Fraud Prevention and Control Act, Taiwan’s cryptocurrency regulatory framework is gradually improving. Operators and investors should closely monitor subsequent developments to ensure compliant operation and investment.