FSC closely monitors virtual asset operators violations in advertisements legislator calls out Bitget for breaching antimoney laundering regulations
As the virtual asset market rapidly grows, Taiwan’s Financial Supervisory Commission (FSC) is intensifying regulatory actions to prevent illegal advertising and money laundering activities. Recently, during an inquiry session at the Legislative Yuan’s Finance Committee, People’s Party legislator Huang Shanshan raised concerns regarding the well-known virtual asset platform Bitget’s alleged failure to disclose its anti-money laundering compliance statement and its advertising in public spaces. The FSC expressed a stern attitude, transferring the case for investigation by the authorities.
FSC Investigates Bitget’s Advertising Activities
On October 30, FSC Chairman Peng Jinlong responded to inquiries from legislator Huang Shanshan regarding Bitget’s advertising behavior in urban public buses despite not having filed the required anti-money laundering compliance statement. Huang stated that the operator completely disregarded existing regulations and openly promoted its platform services in Taiwan. In response, Zhang Zhenshan, Director of the FSC’s Securities and Futures Bureau, confirmed that a complaint against Bitget had been received and acknowledged that this constituted illegal advertising. The case has been forwarded for investigation.
Legislator Huang Shanshan remarked, “These operators running around on the streets, especially those who have been warned, should be seriously investigated by the Securities and Futures Bureau, and penalties should be imposed where due. They haven’t registered, and you haven’t approved them, yet they continue to operate without any consequences. Who is supposed to regulate them? Anyway, I’ll keep doing my own thing since you can’t control me. We do not want these operators to remain outside the law.”
Slow Progress in Taiwan’s Regulations and Insufficient Review Personnel Create Challenges for Foreign Operators
Although Taiwan has established anti-money laundering compliance statements and is transitioning to a registration system, there is no transparent information announcement process for newly applying trading operators like that in Hong Kong. Many foreign operators can only wait quietly after submitting their documentation, and existing international operators face barriers to entry. In fact, numerous foreign exchanges have varying degrees of physical advertising exposure in Taiwan, and following the emergence of new advertising regulations, there has even been active reporting of competitors. Operators have indicated the need for more detailed regulations regarding advertising formats and scopes to better understand compliance.
(FSC Confirms: Taiwan’s VASP Registration System Will Launch Ahead of Schedule on December 1 This Year)
Strengthening Regulation of the Virtual Asset Market, New Special Law Draft on the Way
In light of the growing popularity of virtual assets, the FSC is actively working on drafting a special law for virtual asset management. Peng Jinlong stated that the FSC aims to balance market regulation with investor protection, planning to submit the special law draft to the Executive Yuan by June 2025. The FSC intends to hold public hearings and regulatory announcement procedures to gather extensive opinions, aiming for effective implementation of the new law and establishing clear regulations for virtual asset management.
(The Special Law for Virtual Asset Management Is Coming: FSC Announces Four-Phase Management Plan, Submitting to the Executive Yuan in June 2025)
Strict Anti-Money Laundering Regulations; Unregistered Operators Face Penalties
Currently, according to the law, virtual asset operators are required to register and submit anti-money laundering compliance statements. Huang Shanshan pointed out that although only 26 operators have complied with the regulations, many members of the public still choose to trade with unapproved operators. In response, Zhang Zhenshan stated that any operator failing to register as required will face penalties, and the FSC will not tolerate unapproved operators conducting illegal trading activities in Taiwan.
(Tightening Regulations! Taiwan’s Presidential Office Announces Amendments to Anti-Money Laundering Laws: Illegal Provision of Virtual Asset Services May Lead to Up to Two Years in Prison)
FSC Continues to Monitor and Respond to Violations
Huang Shanshan questioned the FSC’s enforcement力度 against advertisements from unregistered operators, highlighting that some non-compliant operators openly engaged in extensive advertising in public places. Zhang Zhenshan further responded, indicating that Bitget had not filed as required with the FSC and is considered an illegal virtual asset operator, thus prohibited from advertising in Taiwan. The FSC has initiated an investigation and submitted the Bitget case for criminal investigation, hoping to send a clear signal to the market and enhance regulatory effectiveness.
(Taiwan’s FSC Will Implement New System: Unregistered Exchanges Will Bear Criminal Responsibility, Not Just Fines)
