Binance is working with the regulators of Taiwan to bust scammers. The prosecutors in Taiwan have put together evidence that has led to the indictment of 9 influencers for perpetrating financial crimes and undertaking several illegal activities such as money laundering and committing fraud. The exchange platform is working with law enforcement agencies to provide evidence and financial records.
The Financial Crimes Compliance (FCC) of Binance is working alongside the Justice Ministry of Taiwan. At the same time, the Taipei District of Prosecutors Office is set to face a major money-laundering case involving around $6.2 million in digital assets trades in illegal transactions. As per an official statement, the scammers used digital assets as a way to wash illegal funds.
At the same time, fraudulent players were able to fake remittance receipts and counterfeit ID information. Furthermore, the investigators have also reported instance of manipulated customer communication records as a way to circumvent detection by law enforcement agencies.
Binance briefed the media on the matter. However, the platform maintained the privacy of the investors and account holders on that platform.
Binance Worked with Regulatory Agencies to Solve Financial Crimes
A spokesperson for Binance has disclosed that some of the falsified documentation such as fake customer conversation records and foreign identity verification data gives the impression that retail merchants continued to circulate illegal funds with an aggregate valuation of around $6 million.
However, the investigators in Taiwan were able to retrace the illicit transactions by collaborating with Binance.
A government official namely Lo Wei-yuan working as a prosecutor at the Taipei District Prosecutor Office has been attributed with finding all the clues and linking them to the suspected criminals.
This discovery allowed the law enforcement agencies to apprehend nine criminals who were charged with various counts of financial misconduct such as money laundering, running an organized crime syndicate, and committing fraud.
A press release issued by the prosecutor’s office has noticed that Binance set an organized cross-border online meeting with investigation team in order to devise an efficient strategy to apprehend the defaulters.
At the same time, Binance has continued to implement measures to incorporate regulatory compliance with the regulatory agencies hailing from various regions. On this front, the firm has also organized the first-ever training program for law enforcement as a coordinated effort to assist law enforcement agencies and prosecutors in detecting and catching financial crimes.
Binance Files Registration Application in Taiwan
Last year, Binance filed for a registration application with the Financial Supervisory Commission (FSC) of Taiwan in accordance with the local Money Laundering Control Act. Taiwanese regulators are set to publicize crypto regulations in 2024.
Speaking on the matter, FSC chairperson Huang Tianzhu noticed that regulators in the region have reservations about the utility of cryptocurrencies for illegal transactions.
He further noticed that keeping in view the aforementioned concerns regulators have increased regulatory oversight over the crypto industry. The laws proposed by FSC mean that foreign trading platform in the region are likely to get a penalty in case they are operating without local firms and comply with AML requirements. The government has talked about a possibility of up to $1.5 million in financial penalties for criminals.
Central Bank of Taiwan has issued an official statement about the wholesale CBDC research and payment modernization initiatives in December.
Taiwan Completes the Research Phase of Wholesale CBDC
The central monetary authority reported that it has completed the research phase for a wholesale CBDC and called for a feedback from the local business community and academic sector before advancing to the next stage as per a statement issued by Deputy Governor Mei-lie Chu on 7th December.
Chu issued a detailed speech at an event organized for bankers that was dubbed as Banking 4.0 by her. She commented on the rise of AI and substantial hike in demand in retail investment and banking sectors. At the same time, she reserved 50% of her presentation on wholesale CBDCs. According to her, a central banking currency with clear finality will serve as an operational basis for tokenization.
