The suspect, named Chen, living in Kaohsiung city, was trading cryptocurrencies using Facebook groups and selling Tether (USDT) for cash by meeting in person to carry out these transactions physically.

Chen’s transactions were the first arrest for unregistered cryptocurrency trading after the Virtual Asset Service Providers (VASP) registration system came into force in Taiwan on November 30, 2024.

According to reports in local media, Chen sold approximately 400,000 USDT in a short period of one month and earned NT$800,000 (approximately $26,000) from these sales.

Authorities arrested Chen on December 24, 2024 and conducted searches at his workplace and home. During the searches, various evidence such as computers, mobile phones, money counting machines and safes were seized.

The arrest comes after new laws in Taiwan began to be implemented more effectively, and it is stated that this is a serious step towards preventing money laundering.

According to the new regulation in Taiwan, organizations that want to provide virtual asset services must be registered. Individuals or organizations trading virtual currencies are considered to be engaged in illegal activities if they are not legally registered. This means serious penalties and sanctions for illegal transactions.

Chen’s arrest stands out as a successful example of the Taiwanese government’s anti-money laundering strategies. Since cryptocurrency trading has become very popular and growing rapidly, especially in Taiwan, the government is expected to impose stricter controls and regulations on cryptocurrency trading.

Immediately after Chen’s arrest, Taiwanese authorities also raided another unregistered virtual currency trading studio on Chengdu Street in the capital Taipei. The owners of this studio, surnamed Lin and Liu, were selling USDT here with a 10% premium.

Investigations revealed that the studio made sales of NT$200 million (about $6.6 million) last month alone, resulting in a profit of NT$20 million (about $660,000). The employees were receiving a monthly salary of NT$40,000, and the workplace appeared to generate significant income for its employees.

The Financial Supervisory Committee (FSC) in Taiwan states that only 26 registered entities are authorized to provide virtual asset services. Those who are unregistered are violating their authority to trade cryptocurrencies.

Such unregistered transactions can result in prison sentences and large fines in Taiwan. Especially against these illegal activities, Taiwanese authorities aim to prevent such incidents by conducting more inspections and monitoring online platforms.

The Taiwanese government continues to actively work to prevent such illegal trading and encourages the public to only transact with registered, secure and approved service providers.

These anti-money laundering operations in Taiwan not only affect the local market, but also have a significant impact on the global cryptocurrency market. Taiwanese authorities aim to fight such crimes and make cryptocurrency trading more transparent by cooperating internationally.