Taiwan's New Law on Combatting Fraud: Emphasis on Regulating Virtual Assets and Major Advertising Platforms, Scams "Last Longer the More People Are Deceived"

The Executive Yuan of Taiwan passed a series of new laws yesterday to strengthen the crackdown on fraud activities, especially targeting virtual assets and overseas large advertising platforms. This set of so-called "New Four Anti-Fraud Laws" will significantly change the current management approach towards the financial industry and online platforms.

Taiwan's Executive Yuan promotes "New Four Anti-Fraud Laws": foreign currency dealers must have a physical presence, unregistered businesses face up to two years in prison, money laundering carries a five-year sentence.

Tightening Regulations on Virtual Asset Operators: Foreign Operators Required to Establish Local Entities

In the future, operators providing virtual assets and third-party payment services, including individuals and companies, must implement anti-money laundering measures and undergo formal registration. Failure to comply with these regulations may result in fines of up to NT$5 million or imprisonment for up to two years. Additionally, foreign currency dealers are also required to establish local entities in Taiwan to legalize their operations in the country.

Enhancing Responsibilities of Overseas Advertising Platforms: Facebook, TikTok Required to Appoint Taiwan Legal Representatives

In terms of online advertising, the Anti-Fraud New Four Laws require major overseas platforms such as TikTok and Facebook to appoint legal representatives in Taiwan. Failure to comply with the regulations, especially in removing fraudulent advertisements, could lead to fines of up to NT$25 million and possible suspension.

The Executive Yuan includes virtual assets in the anti-fraud system, exempting operators from confidentiality obligations.

Strengthening Criminal Penalties for Fraud: "The More Deception, the Longer the Sentence"

Regarding fraud crimes, the new laws not only increase penalties but also introduce the principle of "the more deception, the longer the sentence." Cases involving fraud amounts exceeding NT$10 million may be subject to a maximum of ten years imprisonment and fines of up to NT$30 million. Furthermore, if multiple offenders are involved or sophisticated fraudulent methods are used, such as impersonating government entities or deep forgery, their penalties will be further increased.

Legalization of Technological Investigation Methods

The new laws also include the legalization of technological investigation methods, allowing the government to use modern technologies such as GPS tracking and thermal imaging devices to track and solve crimes. This is a significant step forward in enhancing public safety through the effective use of technology.

Anti-Fraud New Laws to be Submitted to Legislative Yuan for Review

Vice Chairperson of the Financial Supervisory Commission, Shu-Chen Chiu, pointed out that the new laws will require strict compliance from individuals and corporate currency dealers. All currency dealers in the future must undergo rigorous legal scrutiny and leverage professional accountants to strengthen internal controls, enhancing transparency and trustworthiness in the industry. The implementation of these new regulations is expected to have a profound impact on Taiwan's financial security and online environment. The Anti-Fraud New Four Laws are expected to be submitted to the Legislative Yuan for review in the near future to become formal laws.