Taiwan, Fraud Island? Fraud cases paralyze district prosecutors, prosecutors point fingers at unregulated personal currency businesses

Frontline prosecutors in Taiwan have voluntarily organized the "Sword Green Judicial Reform" group and once again voiced their concerns to multiple government agencies. The number of fraud cases in Taiwan continues to rise significantly, and they hope for effective reforms from the administrative side. In particular, they emphasized the need for "effective supervision of individual currency traders" and the establishment of a "blacklist for front accounts."

Taiwan, Fraud Island: Over 40,000 Fraud Cases in a Year, Overwhelming Prosecutors

The "Sword Green Prosecutors' Reform" indicated that the number of fraud cases handled by district prosecutors this year is significantly higher than last year, with the New Taipei District Prosecutors' Office being the most extreme example:

From September last year to August this year, the New Taipei District Prosecutors' Office has received over 100,000 new cases, an increase of nearly 30%. In fraud cases alone, the number has surged from 27,203 cases to 43,536 cases during the same period, marking a 60% increase.

With the upcoming Taiwan presidential election, election-related investigations have made prosecutors overwhelmed.

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Urging the FSC and Other Agencies to Prioritize Cryptocurrency Regulation

In August, the "Sword Green Prosecutors' Reform" previously expressed concerns that the FSC had not included cryptocurrency exchanges in its supervision, which could be a loophole in the government's anti-fraud efforts. This time, due to issues such as inadequate supervision of large cryptocurrency exchanges, the focus is once again on the FSC, NCC, and the Ministry of Economic Affairs, questioning if there is administrative negligence involved.

In August, the FSC stated that cryptocurrency exchanges must register and failure to comply with anti-money laundering regulations is illegal.

"Business operators engaging in virtual currency activities for others shall register as virtual currency operators. Individuals engaging in virtual currency activities for business purposes should register their business and taxes in accordance with relevant regulations of the Commercial Registration Act and tax registration rules, and comply with anti-money laundering laws and related regulations of these measures. Those engaging in virtual currency activities without completing the anti-money laundering compliance declaration are deemed illegal."

However, many operators have voiced complaints about the FSC's statement, stating that the criteria for defining and reviewing cryptocurrency exchanges are unclear.

By the end of September, the official guidelines will be released, and whether they will meet the expectations of prosecutors remains to be seen.

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