The update directly addresses fraud prevention regulations for financial institutions and virtual asset service providers, with substantial focus on deposit institutions, electronic payment institutions, and cross-industry cooperation mechanisms that fall within retail banking supervision.
Mandatory inheritance: Digital Assets is a secondary focus given the explicit regulation of virtual asset service providers (VASPs) and cross-fiat-to-crypto fraud prevention mechanisms, triggering Investment Services as the parent category.
Specialism
The amendments establish cross-industry fraud prevention mechanisms, information-sharing protocols, and victim compensation procedures that directly address fraud detection and prevention obligations.
Mandatory inheritance: Fraud is a child of Financial Crime, so Financial Crime must be raised as the secondary tag.
TITLE: Taiwan's Financial Supervisory Commission Banking Bureau Announces Fraud Prevention Regulation Amendment
BODY:
On May 28, 2026, Taiwan's Financial Supervisory Commission (FSC) Banking Bureau announced amendments to the Regulations Governing Matters That Financial Institutions and Virtual Asset Service Providers Should Comply With to Prevent Fraud and Crime Harm. The amendments implement cross-industry cooperation mechanisms mandated by the Fraud Crime Prevention Ordinance, which was amended and published on January 21, 2026.
The FSC proposes modifying 52 articles and adding three new articles to strengthen collaboration between financial institutions and virtual asset service providers (VASPs) in combating fraud. Key amendments include establishing cross-industry inquiry mechanisms enabling financial institutions and VASPs to share information when assessing accounts and transactions for anomalies; completing regulations for inter-institutional fraud prevention platforms, including requirements for platform establishment, participating institution operations, and permissible data collection and processing; deepening cross-industry alert mechanisms among deposit institutions, electronic payment institutions, and VASPs to address fraudulent funds flowing between fiat and virtual currencies; and improving procedures for returning remaining virtual assets, including provisions allowing VASPs to liquidate seized virtual assets within flagged accounts to ensure victim compensation.
The amendments recognise that some fraud victims lack virtual asset accounts and cannot receive converted funds, while virtual asset values fluctuate with market conditions. The regulations now permit VASPs to liquidate remaining virtual assets in flagged accounts to facilitate victim restitution.
The FSC will publish the draft amendments in the Executive Yuan Gazette and on its website. The public comment period runs for 30 days from the date of gazette publication. Interested parties may submit feedback through the FSC's Regulatory Query System at the "Draft Announcement" webpage. For inquiries, contact the Banking Bureau's Regulatory System Division at (02)89689632.