The government of Taiwan has acknowledged the cooperation Binance has offered to domestic law enforcement agencies. According to local reports, Binance is the only offshore exchange that assists the government in dealing with virtual asset fraud cases, allowing authorities to access the accounts involved in these actions and deposit the assets derived from these schemes.
Taiwan Mentions Binance’s Cooperation in Virtual Asset Fraud Incidents
Taiwan is currently cracking down on virtual asset investment fraud, tightening the compliance steps that cryptocurrency platforms must follow. As part of an investment control mechanism, 9 cryptocurrency exchanges cooperate with Taiwan’s Ministry of Interior to curb cryptocurrency asset fraud.
While there are more than a thousand virtual asset service providers (VASPs) overseas, Binance is the only one currently involved in cooperation with Taiwan agencies, according to reports from local media. The current sanctions applied by Taiwan’s Financial Supervisory Commission (FSC), the agency involved in supervising financial markets, don’t lead to a proactive investigation of VASPs and currency trade businesses, which can lead to an increase in this kind of fraud.
However, Binance’s cooperation with the National Police Agency of Taiwan has helped it to strengthen its anti-fraud practices. This joint work reportedly includes accessing the accounts involved in these cases and moving the funds available linked to these fraud schemes following the authorities’ orders.
Taiwan’s cooperation with crypto companies has rendered results before. In November, national authorities seized over $320 million worth of USDT, a dollar-pegged stablecoin, from an investment fraud operated by an individual referred to as Quiu. The move was qualified as one of the highest amounts ever seized from one individual in Taiwan.
More sanctions for this kind of incident linked to cryptocurrencies might be applied later this year by enacting a special law targeting these crimes. The cryptocurrency industry is growing, and more than 50 virtual operators expressed their interest in joining the Taiwanese cryptocurrency market in September.
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