Another case of virtual currency operators being punished: San Chuan Tong Zheng was fined 1.5 million yuan by the Financial Supervisory Commission for violating AML regulations.

As the virtual asset market develops rapidly, Taiwan's Financial Supervisory Commission continues to upgrade its regulatory efforts against Money Laundering for related businesses. San Chuan Token Co., Ltd. was fined NT$1.5 million yesterday due to multiple KYC and transaction monitoring failures, becoming the latest case. Looking back over the past year, more than six businesses have been penalized for similar violations.

San Chuan Tong Zheng was fined 1.5 million yuan by the Financial Supervisory Commission.

On July 29, the Financial Supervisory Commission's Securities and Futures Bureau announced that San Chuan Tong Zheng Co., Ltd. (, operating the BitStreetX exchange ), was fined NT$1.5 million for violating Articles 8, 10, and 13 of the Money Laundering Control Act. This penalty stemmed from a special inspection at the end of 2024, which revealed deficiencies in multiple areas such as customer due diligence, transaction monitoring, and record-keeping.

(1) There are circumstances where customer due diligence measures have not followed regulations to obtain the names of senior management personnel of corporate customers, have not verified the wealth and source of funds of high-risk customers, and have not assessed whether customers have sufficient financial capacity, thus approving the increase of their New Taiwan Dollar deposit and withdrawal limits. (2) In the ongoing monitoring of transactions, there are circumstances where the registered IP addresses of customers have not been included in the monitoring scope as required, and the case closure dates of suspicious transaction alerts have not been retained. (3) In the record-keeping operations, there are circumstances where the transaction records in the accounting system do not match the actual situation.

Case Review: Examining Taiwan's VASP Compliance Efforts Through Multiple Fines

San Chuan Tong Zheng is not the only virtual asset service provider recently penalized. ( VASP ), here is a review of the multiple fines issued by the Financial Supervisory Commission.

Hea Digital Technology fined 1.5 million yuan

In July this year, Hoya Digital Technology Co., Ltd. ( operating HOYA BIT Exchange ) was fined for violating the Anti-Money Laundering Act, with deficiencies including insufficient customer risk assessment, failure to implement reviews and account closures for high-risk customers, unreported and uninvestigated suspicious transactions, and failure to properly maintain records.

The blockchain company was fined 1.02 million.

In July this year, Chain Technology Co., Ltd. ( operating the XREX exchange ) was fined for violating the Money Laundering Prevention Act and the Personal Data Protection Act. The deficiencies included failing to strengthen the review of high-risk customers, not re-verifying the identity of users reported for fraud to the bank, and storing user personal data in external company systems without security measures.

Pioneering Digital Fined 500,000 Yuan

In July of this year, Pioneer Digital Technology Co., Ltd. ( operating ZONE Wallet) was fined for violating the Money Laundering Prevention Act, with deficiencies including inadequate review of high-risk customers, unverified sources of funds, and improper handling of grey list.

( Three virtual currency operators violated the Money Laundering Prevention Act, and the Financial Supervisory Commission imposed fines exceeding 3 million TWD ).

Ace Digital fined 1.52 million

In July last year, Ace Digital Innovation Co., Ltd. ( operated the ACE Exchange ) and became the first case to be fined for violating the Money Laundering Prevention Act. The deficiencies included failure to properly verify customers, inadequate transaction monitoring, failure to keep records accurately, and improper personal data management. This case also officially marked the beginning of a new era of compliance for VASP entering "project inspections and penalties."

Modern Wealth Technology fined 1.5 million yuan

Modern Wealth Technology Co., Ltd. ( MaiCoin ) has been fined for violating the Money Laundering Control Act, with deficiencies including inadequate customer due diligence, insufficient transaction monitoring, incomplete transaction records, and improper response to unusual transactions.

CoinEx Technology was fined 1.5 million.

Bito Technology Co., Ltd. (Bito) was fined for violating the Anti-Money Laundering Act, with deficiencies including inadequate customer review, insufficient transaction monitoring, data retention lapses, and improper handling of suspicious transactions.

( Taiwan's Financial Supervisory Commission has taken action again! MaiCoin and Bitoex were fined 1.5 million New Taiwan Dollars each for deficiencies in Money Laundering prevention. )

The Financial Supervisory Commission has consistently stated that it will maintain a certain frequency of inspections and enforcement力度 in the future, in order to ensure that Taiwan's VASP operators comply with international anti-money laundering standards and FATF requirements, and to avoid systemic risks.

From fines to transformation, compliance in the virtual currency industry has become a regulatory focus.

As the demand for virtual assets in the financial system continues to rise, compliance has become a necessary condition for VASPs. The Financial Supervisory Commission has taken continuous action, revealing the current deficiencies in the industry and promoting various platforms to accelerate the establishment of risk control systems and improve KYC and review processes. In the future, the virtual asset market in Taiwan is expected to develop towards a more transparent, secure, and sustainable direction.

This article adds another case of penalties for virtual currency operators: SanChuan Token was fined 1.5 million yuan by the Financial Supervisory Commission for violating Money Laundering prevention regulations, first appearing in Chain News ABMedia.