- Taiwan boosts crypto crime tracking with AI and police-university partnership.
- AI monitors crypto for fraud, aiding faster law enforcement response.
- New VASP rules improve oversight and reduce crypto crime risks.
The Financial Supervisory Commission (FSC) of Taiwan has established a memorandum with the Central Police University to strengthen rules and surveillance regarding virtual asset operations. The increasing concerns regarding virtual currency use in financial crimes motivate this recent partnership between the two groups.
Three main sections guide the working relationship between data exchange and professional training and joint academic research. Taiwan will enhance its supervisory capacity through unified institutional resource allocation to create focused training programs for fighting crypto-related criminal activities.
AI System Enhances Monitoring of Crypto Transactions
The university built an AI-powered analysis system which serves as the main focus of their partnership agreement. Through this system officials obtain visibility into blockchain transactions which enables them to assess wallet value and track trade activities of VASPs. The analysis system delivers all-important information to detect unauthorized activities such as money laundering and fraud.
The authorities will deploy the technology to examine usage patterns of virtual assets with criminal connections. The technology helps identify irregularities in addition to questionable transfer activities that establish a foundation for faster law enforcement approaches to active and new cyber-security threats.
Virtual Asset Services and Regulatory Measures in Taiwan
The term VASP describes corporations and organizations that handle cryptocurrency trading alongside digital wallet administration tasks. Some financial system weaknesses emerge from unregulated VASP services. The cof Taiwan started requiring new guidelines from financial institutions regarding their interactions with VASPs during 2023. The guidelines create greater transparency which helps decrease risks that result from undisclosed payments.
Virtual currencies such as Bitcoin and Ethereum have virtual commodity classification in Taiwan yet their use for illegal purposes remains against the law. The authorities have specified that possessing virtual currency assets by itself is not unlawful but criminals can face legal consequences from using these assets to perpetrate scams or unauthorized financial activities.
Types of Crimes Associated with Virtual Assets
Taiwanese authorities and researchers track international patterns related to virtual currency criminal activities. Initial Coin Offerings (ICOs) together with other fraudulent schemes remain a major point of concern in cryptocurrency activities that deceive investors. The victims of the PlusToken case were deceived into investing into a fake platform that had no functional operation. The illegal investment plan resulted in legal consequences, while authorities stripped away assets worth millions.
Credit crime is another form of digital offense. In 2020, hackers breached KuCoin exchange networks and stole cryptocurrency assets worth more than $280 million. Exchanges and law enforcement proved their capacity to recover a large number of stolen assets through these incidents. The NetWalker ransomware attackers conducted a cyber extortion on Argentina’s immigration agency by requiring cryptocurrency payments in return for decryption keys.
