Taiwan’s New Anti-Fraud Law: Strict Monitoring of Virtual Assets and Major Advertising Platforms, Fraudsters Face Prolonged Investigation
The Taiwan Executive Yuan passed a series of new laws yesterday to strengthen the fight against fraudulent activities, particularly targeting virtual assets and overseas large-scale advertising platforms. This set of so-called “Four New Anti-Fraud Laws” will significantly alter the current management methods for the financial industry and online platforms.
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Strict regulation of virtual asset operators: Foreign operators must establish local entities
Enhanced responsibility of overseas advertising platforms: Facebook, TikTok must appoint legal representatives in Taiwan
Increased punishment for fraud crimes: “The more fraud, the longer the sentence”
Legalization of technological investigation methods
The Four New Anti-Fraud Laws to be submitted to the Legislative Yuan for review
In the future, operators providing virtual asset and third-party payment services, including individuals and companies, must implement anti-money laundering measures and complete formal registration. If these operators fail to comply with the regulations, they will face fines of up to NT$5 million or imprisonment for up to two years. In addition, foreign currency traders are also required to establish local representatives in Taiwan to legalize their operations in Taiwan.
In terms of online advertising, the Four New Anti-Fraud Laws require large overseas platforms such as TikTok and Facebook to establish legal representatives in Taiwan. If these platforms fail to comply with the regulations, particularly in taking down fraudulent advertisements, they may face fines of up to NT$25 million or even be banned.
The new laws also impose heavier penalties for fraud crimes and introduce the principle of “the more fraud, the longer the sentence.” For cases with fraudulent amounts exceeding NT$10 million, the maximum punishment is ten years of imprisonment and a fine of up to NT$30 million. Furthermore, if multiple people are involved or complex fraud methods are used, such as impersonating government entities or deep forgery, the penalties will be further increased.
The new legislation also includes the legalization of technological investigation methods. In the future, the government will be able to use modern technologies such as GPS tracking and thermal imaging devices to track and uncover crimes. This is a significant step forward in utilizing technology to enhance public safety under existing laws.
Qiu Shuzhen, Deputy Chairman of the Financial Supervisory Commission, pointed out that the new laws will require both individual and corporate currency traders to strictly comply with regulations. All currency traders will need to undergo rigorous legal scrutiny in the future and rely on professional accountants to strengthen internal controls, thereby enhancing the transparency and trustworthiness of the industry as a whole. The implementation of these new regulations is expected to have a profound impact on Taiwan’s financial security and online environment. The Four New Anti-Fraud Laws are expected to be submitted to the Legislative Yuan for review in the near future to become formal laws.
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