Binance and Taiwan regulators curb $6.2m money laundering ring

Binance has collaborated with Taiwan’s Ministry of Justice Investigation Bureau and the Taipei District Prosecutors Office to crack down on a $6.2 million money laundering scheme.

According to the official release, the massive operation valued at nearly NT$200 million was aiding scammers in laundering illicit funds using cryptocurrencies. The perpetrators used fabricated remittance proofs, identification data, and customer conversation records to bypass authorities.

Lo Wei-yuan, prosecutor at the Taipei District Prosecutors Office, has indicted nine individuals and charged them with violations of the Money Laundering Control Act, aggravated fraud, and organized crime prevention regulations.

Law enforcement authorities were able to trace the suspicious transactions with the aid of Binance’s Financial Crimes Compliance (FCC) department.

The exchange introduced the FCC in 2020 in a bid to adhere to global standards in combating financial crimes involving digital assets. It comprises investigators from different backgrounds in technology, banking, law enforcement, and intelligence.

“Upon receiving the request, Binance [..] set up a cross-border online meeting with the investigating officers and prosecutors to discuss the collaborative strategy,” the release noted.

Binance has made a notable name for itself within Taiwan. Last year, it applied to be registered under Taiwan’s Financial Supervisory Commission (FSC) and Money Laundering Control Act.

Local regulators have previously acknowledged the exchange’s cooperation in aiding with virtual asset fraud cases.

The firm also conducted a virtual assets law enforcement workshop for the officers of the Keelung District Prosecutors Office in Taiwan in March.

Meanwhile, regulators in Taiwan are looking to introduce cryptocurrency regulations by the end of 2024. Huang Tianzhu, the chairman of the Financial Supervisory Commission (FSC), has raised concerns about illegal activities powered by cryptocurrencies and plans to bolster its oversight of crypto exchanges and impose penalties.

The nation currently hosts 10 entities offering virtual currency trading services. Regulators have also advised against using non-compliant entities to avoid risks.