Taiwan FSC Revises Anti-Fraud Rules for VASP Asset Sales and Cross-Sector Inquiries

The current rules were issued on November 29, 2024, but gaps remain in cross-sector inquiries. Fraud proceeds can move among banks, electronic payment providers and virtual asset service providers, or VASPs, while victims may not have virtual asset accounts. Taiwan’s Financial Supervisory Commission strengthened restitution and joint fraud-prevention mechanisms in line with amendments to the governing law promulgated on January 21, 2026. The draft sets no separate fixed monetary threshold.

The FSC announced the proposed revisions on May 28, 2026, amending 52 of the existing 70 articles and adding three. The proposal has a 30-day comment period and is expected to be issued by July 21 at the latest. VASPs may first sell virtual assets remaining in flagged accounts before returning the proceeds to victims. Cross-sector inquiries among banks, electronic payment providers, credit card issuers and VASPs must be answered within five business days. The number of criteria for identifying suspicious activity will rise from nine to 13, while anti-fraud platforms will shift to an approval-based system.