Taiwanese man arrested for illicit USDT use, first case under new AML laws

The local law enforcement in Taiwan has arrested a 30-year-old individual named Chen, who allegedly functioned as an unlicensed cryptocurrency trader, due to the recent implementation of stricter anti-money laundering laws.

In Kaohsiung, Chen has been leveraging Facebook groups to negotiate cryptocurrency trades, particularly Tether (USDT), and organize face-to-face deals where he swaps the digital currency for hard cash.

Against the backdrop of the recent law, it’s said that Chen executed a significant number of deals within just a few weeks, amounting to 400,000 USDT and earning him NT$800,000. On December 24, police took him into custody and confiscated various items such as computers, mobile phones, cash registers, and safes for use as evidence.

Since the Virtual Asset Service Provider registration system took effect on November 30, 2024, this is the first instance reported by local news source The Liberty Times of such a case occurring.

According to the Money Laundering Prevention Act, it is not allowed for unregistered businesses to provide services involving virtual assets.

Unregistered coin dealers 

As a crypto investor, I recently learned that authorities conducted a raid on an unregistered “coin dealer studio” located on Chengdu Road in Taipei. This operation, managed by individuals surnamed Lin and Liu, was discovered to be selling USDT at a 10% markup.

Last month, it was found that the studio earned more than NT$200 million in revenue and had a profit of around NT$20 million, which is equivalent to approximately $600,000. According to reports, workers at this studio receive a monthly salary of NT$40,000.

The studio made over NT$200 million in sales last month and had a profit of around NT$20 million or $600,000. Employees at the studio get paid NT$40,000 per month.

The Financial Supervisory Commission strongly advises that only 26 legally recognized entities have the authority to deal with virtual assets. Participating in unlawful digital currency transactions may lead to legal consequences such as imprisonment for a maximum of two years, or fines amounting up to NT$5 million.

Officials are stepping up monitoring of online spaces to spot illegal activities, and they’re encouraging people to conduct transactions solely with sanctioned service providers.

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2025-01-10 17:06