meta_id 3192773

The Financial Supervisory Commission (FSC) of Taiwan has proposed amendments to the "Regulations Governing Anti-Fraud Measures by Financial Institutions and Virtual Asset Service Providers." The proposed amendments prescribe: Virtual asset service provider adjustments: Revising the definition of virtual asset accounts to clarify that they are provided to customers by virtual asset service providers (VASPs) for using virtual asset services, rather than being directly opened by the VASPs. Furthermore, the amendments stipulate procedures for when a virtual account linked to a VASP's trust deposit account is flagged as a warning account. The amendments also permit VASPs to sell remaining virtual assets in a warning account and return the proceeds in fiat currency to the victim, and require VASPs to notify victims through the remitting institution, while establishing cooperation mechanisms among institutions to facilitate the return of funds. Expanded definitions and scope: Expanding the criteria for identifying abnormal deposit accounts, electronic payment accounts, credit cards, or virtual asset accounts suspected of involvement in fraud, thereby enabling earlier early-warning detection. Additionally, the term "Anti-Fraud Platform" and its participating institutions are explicitly defined. Cross-sector cooperation and joint defense: Authorizing cross-sector inquiries among deposit institutions, electronic payment institutions, credit card business institutions, and VASPs, and specifying the required information each sector must provide upon inquiry. The amendments also detail the joint defense mechanisms among these institutions, including protocols for freezing funds, tracing the flow of fraudulent funds across different account types, and responding to notifications from law enforcement. Anti-Fraud Platform regulations: Introducing a new chapter (Chapter VI) that mandates institutions establishing an Anti-Fraud Platform to apply for FSC approval by submitting specific documents. The amendments also specify the operations participating institutions can perform using the platform and the scope of customer information they can collect, process, and utilize. Victim protection and procedures: Expanding the types of documents victims can use to apply for the return of remaining funds, now including proof of report documents issued by any judicial police authority, rather than just the police. Furthermore, the amendments clarify the channels available to account holders, users, or cardholders if they have disputes regarding the freezing of their accounts by law enforcement. Feedback may be submitted via the FSC's draft regulation portal by June 29,2026.