- Taiwan FSC partners with police university to track and combat crypto-related financial crimes.
- New AI tool helps Taiwan trace crypto flows and monitor VASPs for fraud and money laundering.
- Cross-agency deal boosts oversight, data sharing, and training in virtual asset crime detection.
On Monday, the FSC signed an MOU with Central Police University with the intention of emplacing controls over virtual asset activity and expanding the regulatory capacity, according to an FSC announcement. The partnership allows the FSC to directly access a cryptocurrency crime-tracking system developed by the university. Authorities say this will strengthen the ability to monitor and analyze suspicious transactions, particularly those linked to fraud and money laundering.
Agencies Link Up to Trace Crypto Transactions
Under the agreement, the FSC and Central Police University will collaborate across three areas: data sharing, talent development, and research. The initiative is aimed at tackling concerns about the use of cryptocurrencies in financial crime as more and more people and companies increasingly invest in the virtual world of digital assets like Bitcoin and Ethereum and similar tokens.
This shift provides Taiwan’s regulatory approach to digital assets with a major first for the FSC, in accessing the AI-powered crime-tracking system. This technology enables mapping of transaction flows, determination of balances in wallets and evaluating trading activity and storage patterns of Virtual Asset Service Providers (VASPs). The providers include crypto exchanges and digital wallets, which aid in trade and management of cryptocurrencies.
According to the Judicial Reform Foundation, virtual currencies have become a preferred tool for criminal activity due to their anonymous nature and limited traceability. By integrating this system, authorities hope to improve detection and investigation of illicit financial movements within the digital asset space.
The agreement also highlights cross-agency cooperation. Officials say combining the FSC’s financial regulatory experience with the police university’s law enforcement expertise will help Taiwan to respond more effectively to the evolving risks tied to virtual assets.
Regulators Expand Efforts to Tighten Oversight of VASPs
Four compliance requirements have already been introduced to the FSC that would cover existing financial institutions that deal with VASPs, including AML measures and conducting risk assessments. Last year, these rules were intended to reduce the chance of unlawful use of digital platforms.
Through the new partnership, agencies share best practices in inter-agency training and as they work forward to future research regarding crime trends in crypto, they support those efforts. The key training station for law enforcement officers, Central Police University, will be charged with the responsibility of preparing financial regulators and investigators to identify and trace digital transactions that could connect to illegal activities.
This cooperation indicates a broader strategy by the FSC to increase regulatory scrutiny and better adapt to financial technologies that operate beyond traditional banking systems. With virtual asset markets growing in size and complexity, officials say the agreement is a step toward building institutional capabilities needed to manage risks in this area.
Rather than duplicating best practices of financial regulation, Taiwan aims to join academics, law enforcement training and regulation to develop coordinated policing of the digital financial services. The memorandum plugs into a larger effort to enhance Taiwan’s capacity to monitor a new variety of finance and safeguard against its abuse.
