Coins want to be called "the only authorized by the Financial Supervisory Commission"! Peng Jinlong: Just because the registration passed does not mean the behavior is legal.

The largest physical Virtual Money exchange in Taiwan, "Coin Thinking," is suspected of being involved in a money laundering scheme by a fraudulent group while claiming to be the "only authorized" by the Financial Supervisory Commission. In response, investigations have begun, and the chairman of the Financial Supervisory Commission, Peng Jinlong, clarified during a Legislative Yuan session on April 30 that advertising does not equal verification, and that the operators have only completed the money laundering prevention registration, which does not mean their activities are completely legal. He also emphasized the promotion of a specialized law for virtual assets to implement regulation.

The coin wants to be called "the only authorized by the Financial Supervisory Commission", and the advertisement has sparked controversy.

The largest physical Virtual Money exchange in Taiwan, "Coin Dream," has been exposed for colluding with a fraud group and is suspected of Money Laundering, while promoting itself as the "only authorized coin dealer in Taiwan by the Financial Supervisory Commission," raising concerns during an inquiry by Kuomintang legislator Lin De-Fu in the Legislative Yuan.

In this regard, Chairman of the Financial Supervisory Commission, Peng Jinlong, emphasized during the Legislative Yuan session on April 30 that the exchange is merely completing the "Money Laundering prevention declaration registration" as required, and this should not be considered as authorization, nor does it represent that all actions are legal; advertisements are not entirely truthful.

Although the coin has been registered, it does not mean that all behaviors are compliant.

Peng Jinlong stated that currently, virtual money operators are not fully regulated. The Financial Supervisory Commission only requires all virtual money platforms and trading businesses ( VASP ) to complete the declaration registration of the Anti-Money Laundering Act before March 31 of this year in order to operate in Taiwan. Coinxiang has also completed this registration.

However, at the onset of the incident, the investigation and inspection team had already dispatched personnel to the scene to understand the situation. Peng Jinlong admitted that although the operators have not yet been regulated, efforts will be accelerated in the future.

The new law is in effect, changing from a declaration system to a registration system.

Regarding the current regulatory mechanism, Director Peng explained that after last year's amendment, it has shifted from the original "declaration system" to a "registration system." If operators do not complete registration within the deadline, they may face criminal liability for conducting related businesses in the future. Currently, 31 operators have completed their registration applications.

The special law for virtual assets is about to be implemented, expected to be submitted to the Executive Yuan before June.

Peng Jinlong also pointed out that the Financial Supervisory Commission has begun drafting the "Virtual Assets Service Act," which is currently in the stage of collecting opinions from various sectors and is expected to be formally submitted to the Executive Yuan before 6/30. He emphasized that while it cannot be said that regulation will be fully in place at once, this special law will be an important step towards "more sound and comprehensive" management.

Will future coin merchants be trusted like banks, and will there be strict controls to screen operators?

In response to Legislator Lin Defu's question, "Can future coin merchants gain the trust of the public like banks?"

Peng Jinlong responded that the special law will raise the operational threshold and safety for businesses, and in the future, those remaining in the market will be operators with stricter conditions and better risk management. The development of the virtual asset market will also be based on a foundation of "safety and stability."

This incident once again highlights the gray areas of the virtual money industry under an incomplete regulatory system. Although the Financial Supervisory Commission has initially controlled it through anti-money laundering mechanisms, it is still difficult to comprehensively curb exaggerated advertisements and potential illegal activities. In the future, with the promotion of the "Virtual Asset Service Act," the market order is expected to be further rectified.

( The largest physical coin dealer in Taiwan, "Coin Dream," is involved in Money Laundering. The Criminal Investigation Bureau conducted searches on 33 routes, and 7 people were brought to the case. )

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