Taiwan’s first case: Kaohsiung personal currency dealer was arrested for buying and selling USDT. Is it illegal to trade cryptocurrencies privately?

After the new money laundering prevention law came into effect, a 30-year-old man surnamed Chen in Kaohsiung, Taiwan, was arrested by the police for illegally engaging in virtual currency personal currency dealer transactions without completing registration as required. (Preliminary summary: The end of individual currency dealers) Taiwan’s new anti-money laundering regulations will go into effect on November 30. Virtual asset services are not allowed without registration) (Background supplement: The third reading of the amendment to the Money Laundering Prevention Law passed: Overseas exchanges, virtual currency dealers Registration is required, and offenders are subject to a maximum sentence of 2 years in prison and a fine of NT$5 million). The Legislative Yuan passed the "Draft Amendment to the Money Laundering Prevention Law" on the third reading in July last year. One of the key points of the amendment is to "strengthen the supervision of virtual asset services and strictly prohibit the use of virtual assets to launder money." ”, the newly added Article 6 of the new law included “virtual asset services” into formal regulations for the first time and officially came into effect on November 30 last year. From now on, both exchanges and individual currency dealers will need to complete money laundering prevention registration with the competent authority. Failure to register in accordance with the law will violate the criminal law and will result in a fixed-term imprisonment of not more than 2 years, criminal detention, or a fine of not more than 5 million yuan, or a fine of not more than 5 million yuan, and a legal person may be fined not more than ten times. As for exchanges that have previously passed money laundering declarations, according to the transitional provisions specially formulated by the Financial Supervisory Commission, Taiwan’s operators that have completed the money laundering prevention legal compliance declaration must register with the Financial Supervisory Commission no later than March 31 this year, and officially register with the Financial Supervisory Commission no later than September 30. Complete the registration, otherwise you will not be allowed to continue operating the virtual asset business. The first illegal personal currency dealer case after the implementation of the new law. According to Taiwanese media reports today (9th) (Liberty Times), a 30-year-old man surnamed Chen in Kaohsiung became the first illegal personal currency dealer to be seized after the new law came into effect because he failed to complete registration in accordance with regulations. case. According to the police, a man surnamed Chen has been posting messages through virtual currency-related societies since October last year, claiming that "you can find me if you want to exchange coins" in order to find buyers and meet privately to trade and sell Tether (USDT). The two parties made an appointment to meet in Kaohsiung City. After the buyer paid in cash, Chen Nan immediately transferred the corresponding amount of virtual currency to the other party's designated wallet. In just one month after the implementation of the new law and before Chen Nan was arrested, he completed at least a hundred transactions, with a transaction volume of up to 400,000 Tether coins, and made an illegal profit of approximately 800,000 yuan. The police took action on December 24 last year, arrested Chen Nan, and seized relevant evidence, including computer hosts, mobile phones, money counting machines, and Tether coins. Extended reading: The end of personal currency dealers) Taiwan’s new anti-laundering regulations came into effect on November 30. Unregistered virtual asset services are not allowed. Taipei’s illegal currency dealer studios were also raided by the police. In addition to personal currency dealers, the police also targeted unregistered physical currencies. Shang Studio launched a sweep. On the 2nd of this month, the police seized an illegal currency dealer studio called "Yuyou" on Chengdu Road in Taipei City. The studio sells Tether coins at a price that is 10% higher than the market price. The transaction is in cash, and the clerk contacts the upper management to complete the transfer of virtual currency. Police investigations revealed that the studio had a monthly turnover of more than 200 million yuan and made illegal profits of up to 20 million yuan. The police seized a number of relevant exhibits on the spot and sent two clerks named Lin and Liu to justice based on illegal facts. The definition of "providing virtual asset services" is unclear, which may lead to legal disputes. The point I want to make is that the definition of "providing virtual asset services" in the amendment to the Anti-Laundering Law is unclear, which may lead to erroneous precedents and chaos. . For example, if someone helps a friend to manage and buy and sell cryptocurrency with relatives and friends, is it also considered a type of "virtual asset service"? If there is a dispute between the two parties, is it possible for interested parties to report that he has not registered for money laundering prevention, so that the judge can determine his guilt under the money laundering prevention law? Regarding this concern, some anonymous crypto industry commentators have previously commented on Xiangdong District: Lawmakers do not know that the ultimate purpose of cryptocurrency is to lower the financial threshold and allow all people to use unrestricted financial services. On the contrary, such legislation Restricting the use of cryptocurrency will not allow all cryptocurrency services to be controlled by the government. I am afraid that there will only be more underground transactions. The police appeal: All transactions by unregistered currency dealers are illegal. The police remind that currently only 26 operators in Taiwan have completed the virtual asset service industry (VASP) registration in accordance with regulations. The relevant list can be found on the official website of the Securities and Futures Bureau of the Financial Supervisory Commission. All other unregistered individual coin dealers and coin dealer studios are operating illegally and are subject to imprisonment of not more than two years, criminal detention, or a fine of not more than NT$5 million. Related reports: The end of personal currency dealers) Taiwan’s new anti-war regulations will go into effect on 11/30. Unregistered virtual asset services are not allowed. Trump promises: Amnesty on the first day after winning the election for the “Founder of Silk Road”, Hong Kong’s genius who created the Bitcoin business empire Cryptocurrency "OTC currency dealers" will be issued a licensing system: the Securities Regulatory Commission may jointly supervise with the Customs. "Taiwan's first case" Kaohsiung personal currency dealer was arrested for buying and selling USDT. Is it possible to violate the law by privately trading cryptocurrencies?"This article was first published in BlockTempo (Dong District Dongzhu - the most influential blockchain news media).