Update (May 17, 12:30 UTC): This article has been updated to include comments from Binance exclusively on Cointelegraph. Additional reporting by Derek Andersen.
Binance’s Financial Crime Compliance (FCC) Department has partnered with the Taiwan Ministry of Justice’s Investigation Bureau and the Taipei District Prosecutor’s Office to handle a large-scale money laundering case , thereby solving a NT$200 million (US$6.2 million) digital asset scam. . .
According to an official statement, the operation allowed criminals to launder illegal proceeds through cryptocurrency transactions. Fraudsters used false transfer documents, falsified identifying information, and manipulated customer communications records to avoid detection by law enforcement.
In a statement provided to Cointelegraph, Binance was careful not to identify the case in question, while specifying that the operation had been reported in the media. According to Binance, the operation falsified documents, including “fake customer chat logs, … and falsified identity verification data”, to make it appear that individual traders were transferring funds totaling approximately NT$200 million (approximately US$6 million).
Through collaborative efforts with Binance, Lu Weiyuan, prosecutor of the Taipei District Prosecutor’s Office, has compiled a comprehensive picture of the suspicions of nine people accused of crimes, including money laundering, fraud and organized crime.
The statement noted:
“Upon receipt of the request, Binance organized a cross-border online meeting with investigators and prosecutors to discuss the cooperation strategy.”
Binance has implemented measures and efforts that go beyond compliance with standards and is actively cooperating with law enforcement agencies around the world. This includes the industry’s first law enforcement training program – a coordinated effort across the globe to help law enforcement and prosecutors detect financial and cyber crimes and prosecute bad actors.
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In 2023, Binance applied for registration with the Taiwan Financial Supervisory Commission (FSC) and the Anti-Money Laundering Law. Local regulators have already recognized the exchange’s collaborative efforts to assist in digital asset fraud investigations.
Additionally, in March, Binance Hosted A virtual digital asset law enforcement training workshop for officers from the Keelung District Prosecutors’ Office in Taiwan, to share their experiences in combating digital asset crimes.
Meanwhile, Taiwan regulators are considering introducing regulations on cryptocurrencies by the end of 2024. Huang Tianzhu, chairman of the Financial Services Commission, has raised concerns over the use of cryptocurrencies. currencies for illegal activities and plans to strengthen its monitoring of cryptocurrency exchanges and impose penalties.
The proposed law means foreign exchange platforms face criminal penalties unless they establish local branches and comply with anti-money laundering (AML) regulations.
Taiwan’s Justice Ministry recently proposed amendments to existing anti-money laundering laws, which could impose prison sentences of up to two years on non-compliant companies and fines of up to $1.5 million . The amendments aim to strengthen the campaign against fraud and strictly regulate anti-money laundering measures for cryptocurrency service providers.
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