Breaking the rumors, the Financial Supervisory Commission explains the anti-fraud front: cash transactions in the virtual asset industry will be limited, with new regulations expected to take effect by the end of June.

Cash transactions are difficult to trace and become a loophole for fraud. The Securities and Futures Bureau requires the VASP association to amend its self-regulatory guidelines within a month.

To combat increasingly diverse methods of fraud and money laundering, Taiwan's Financial Supervisory Commission (FSC) has once again taken action, initiating a new wave of anti-fraud measures targeting the virtual asset industry. Following the announcement by the Investigation Bureau that it will conduct financial inspections on virtual asset operators, the FSC's Securities and Futures Bureau (SFB) also officially sent a letter to the Virtual Currency Business Association of the Republic of China (abbreviated as VASP Association) on May 7, requesting that it revise its self-regulatory guidelines within a month to prohibit member operators from accepting cash for virtual asset transactions. This move will strengthen the traceability of funds and reduce the risk of fraud, with implementation expected by the end of June at the earliest.

Transparent cash flow! Securities and Futures Bureau: Fully prohibit cash transactions, included in self-regulatory norms.

According to the content of the letter from the Securities and Futures Bureau, due to the difficulty in tracking cash transactions in terms of capital flow, which can create cash flow breakpoints and be exploited by criminals for money laundering and fraud, it is requested that the VASP association assist in conveying to its members that when conducting transactions with customers, they should adopt traceable capital flow methods and formulate revisions to the self-regulatory norms for review by June 6.

The Securities and Futures Commission stated that once the amendments are completed and filed, they could be implemented within two weeks at the earliest, but there is still a risk of delay if the content is incomplete. Although there is currently no explicit law prohibiting cash transactions, the self-regulatory mechanism through the association has already helped to implement anti-fraud policies in advance.

Market rumors are rampant? The Securities and Futures Bureau clarifies: No ban on new Taiwan dollar transactions, over-the-counter trading is still possible.

Due to the potential impact of this measure on the operations of some physical store currency dealers, there were rumors in the market that the Financial Supervisory Commission intended to completely ban New Taiwan dollar transactions or over-the-counter (OTC) transactions, which caused tension in the industry. In response, the Securities and Futures Bureau firmly clarified that these rumors are all false. As long as they meet the application qualifications for the registration system, both individual currency dealers and physical operators can still apply for operations and engage in cryptocurrency exchange business in accordance with the law, and will not be excluded.

VASP Association expresses its stance: actively communicating and cooperating with amendments, balancing development and compliance.

In response to policy changes, the VASP association also quickly reacted, stating that it will uphold the spirit of self-discipline, actively communicate and coordinate with regulatory authorities, and assist members in achieving the goal of financial transparency. The association pointed out that the membership structure is diverse, with varying degrees of impact from policies, among which the B-class members, primarily consisting of physical stores and BTM (Bitcoin ATM) operators, are the most affected.

The association emphasizes that it will strive to seek a solution that simultaneously protects consumer rights, assists businesses in transformation, and promotes the overall stable development of the industry, helping Taiwan's virtual asset operators to develop in the long term under a compliant regulatory framework.

Are physical businesses facing survival challenges? Financial Supervisory Commission: Company accounts can be used for transfers to respond.

For physical currency merchants, the cancellation of cash transactions undoubtedly changes their operating model. The Securities and Futures Commission pointed out that although credit cards and electronic payments are currently not available for virtual asset transactions, physical operators can still collect payments through general company accounts, such as requesting customers to remit or transfer funds. Some operators have already adopted this method, and it should not pose a fatal impact on their survival in the short term.

Is a market elimination trend starting? Several operators are quietly withdrawing from the market.

According to industry sources, a number of entities have chosen to withdraw from the market, including "Xia He", which did not apply for registration before the deadline of March 31, and "All the Way", "Yin Tianxia", "Binxiang Technology" and "Asia Pacific Iante", which have withdrawn since November last year. At present, the number of B members has been reduced from 10 in the early days to only 5, including Hongzhu Digital, Taiwan Zhijing, Sanfeester, Power International and Yangjia.

In conjunction with gold inspections and policy adjustments, the Securities and Futures Commission: the market will naturally weed out the weak and retain the strong.

With the criminal police intensifying their actions against fraud, the Financial Supervisory Commission's inspection bureau has launched financial inspections. Combined with the recent amendments to self-regulatory standards concerning cash transactions, virtual asset operators are facing stricter compliance requirements. The Securities and Futures Bureau believes that it is normal market adjustment for some operators to choose to exit after assessing their own conditions, which helps the industry develop towards a more robust and transparent direction.

This article debunks rumors and explains the Financial Supervisory Commission's battle against fraud: cash transactions in the virtual asset industry will be restricted, with new regulations expected to be implemented by the end of June at the earliest, first reported by Chain News ABMedia.