TAIPEI (Taiwan News) — Taiwan's Financial Supervisory Commission announced Monday that it has signed a memorandum of understanding with the Central Police University to strengthen oversight of virtual asset activities.
Virtual assets include cryptocurrencies such as Bitcoin and Ethereum as well as other types of digital tokens. Due to the anonymity, traceability challenges, and transparency inherent in virtual currencies, they have become a breeding ground for crime, according to the Judicial Reform Foundation.
The partnership focuses on three main areas, including data sharing, talent development, and research collaboration. Through the integration of cross-agency resources, the initiative seeks to expand supervisory capabilities for emerging financial services, while also fostering interdisciplinary training and exchanges.
A key feature of the collaboration is the commission’s access to an AI cryptocurrency crime tracking analysis system developed by the university. This advanced technology supports the analysis of cryptocurrency transaction flows, wallet balances, trading volumes, and storage capacities of virtual asset service providers (VASPs).
It also enables authorities to monitor trends in the use of virtual assets for fraud and money laundering.
VASPs refer to entities offering trading and management services for virtual assets, including cryptocurrency exchanges and digital wallet providers. To mitigate financial crime risks associated with virtual assets, the FSC last year introduced four key requirements for financial institutions engaging with VASPs, per UDN money.
By formalizing cooperation with the university, the commission aims to enhance Taiwan’s regulatory framework and improve the nation’s ability to address financial crimes in the evolving digital asset landscape. The FSC emphasized its ongoing commitment to cross-agency collaboration and technological innovation in combating financial crime.
