Taiwan's Legislative Yuan today passed the amendment to the "Fraud Crime Prevention Act" on its third reading. This is the most comprehensive legislative amendment against fraud crimes in recent years, which specifically includes virtual asset-related fraud in its regulations, demonstrating the government's attention to the issue of cryptocurrency fraud.
A three-tiered fine system: with a maximum fine of 100 million yuan.
The most attention-grabbing aspect of this amendment is the significant increase in fines, adopting a three-tiered progressive system:
Anyone who defrauds others of 1 million yuan or more shall be sentenced to imprisonment for not less than 3 years but not more than 10 years; anyone who defrauds others of 10 million yuan or more shall be sentenced to imprisonment for not less than 5 years but not more than 12 years; anyone who defrauds others of 100 million yuan or more shall be sentenced to imprisonment for not less than 7 years or life imprisonment.
This move is seen as a direct response to the frequent large-scale cryptocurrency scams in recent years, including fake investment platforms and fake exchanges, with victims losing tens of millions or even hundreds of millions of yuan.
Strengthening the mechanism for preventing cash flow obstruction
The amendment also authorizes financial institutions to proactively suspend account transactions and notify the police upon detecting suspicious transactions, thereby accelerating the interception of fraudulent funds. This provision is expected to have a substantial impact on fraud cases involving virtual assets, as these cases often involve the rapid transfer of funds overseas.
The Ministry of Justice stated that in the past, financial institutions often missed the golden time to intercept suspected fraudulent accounts due to insufficient legal authorization. This amendment clearly provides financial institutions with a legal basis, which is expected to significantly improve the interception rate of fraudulent funds.
Victim protection and voluntary surrender for reduced sentences
The amendment also includes victim protection provisions, stipulating that members of fraud syndicates who surrender themselves and reach a settlement with the victim within six months of committing the crime can receive a reduced sentence. This measure aims to encourage lower-level members of fraud syndicates to come forward and testify, assisting in the investigation of core members.
Warning signs for the crypto
For the cryptocurrency industry, this legislative amendment sends a clear signal: the government is intensifying its efforts to combat fraud using virtual assets. Industry insiders point out that legitimate virtual asset operators should actively cooperate with government regulations and implement KYC (Know Your Customer) and AML (Anti-Money Laundering) standards to distinguish themselves from fraudulent activities.
With the Taiwan Virtual Assets Association expected to be established in the first quarter of next year, coupled with the recent amendments to the Fraud Prevention Act, Taiwan's cryptocurrency regulatory framework is gradually being improved. Business operators and investors need to closely monitor subsequent developments to ensure they operate and invest within a compliant framework.
