Legislator Lin Te-fu Questions Allegations of Fraud Involving Cryptocurrency Business “Bishop”
Legislator Lin Te-fu pointed out during questioning that the cryptocurrency company “Bishop,” which claims to have the most physical stores in Taiwan, is allegedly involved in a money laundering scheme connected to a fraud group while promoting itself as “the only authorized by the Financial Supervisory Commission (FSC).” In response, investigations have commenced. FSC Chairman Peng Chin-long clarified during the Legislative Yuan session on April 30 that advertising does not equate to certification, and that businesses merely completing anti-money laundering registration do not mean all their actions are completely legal. He also emphasized the promotion of a dedicated law for virtual assets to strengthen regulation. However, the claim of being “the only authorized by the FSC” appears to stem from a counterfeit Bishop website.
Claims of “Only Authorized by FSC” Spark Controversy
Legislator Lin Te-fu questioned that the company “Bishop” has been reported to collude with fraud groups, suspected of money laundering, while advertising itself as “the only authorized by the FSC” in Taiwan, demanding a response from the FSC chairman. In this regard, Chairman Peng Chin-long emphasized during the Legislative Yuan session on April 30 that Bishop has only completed the “Anti-Money Laundering Declaration Registration” as required, which should not be interpreted as authorization, nor does it imply all actions are legal; the advertising is not entirely truthful. Regarding the claim of being “the only authorized by the FSC,” it seems to have originated from misinformation on a counterfeit website.
Bishop’s Registration Does Not Imply Compliance
Peng Chin-long stated that currently, virtual asset operators are not fully regulated. The FSC only requires all virtual asset platforms and trading operators (VASP) to complete their anti-money laundering declaration registration by March 31 of this year in order to operate in Taiwan. Bishop has completed this registration. However, upon the outbreak of the incident, investigators have been dispatched to understand the situation. Peng admitted that although operators are not yet fully regulated, efforts will be accelerated in the future.
New Law Transition from Declaration to Registration
Regarding the current regulatory mechanism, Chairman Peng explained that after last year’s amendment, the system has shifted from a “declaration system” to a “registration system.” Operators who fail to complete registration by the deadline may face criminal liability for their related business operations. Currently, 31 operators have completed their registration applications.
Virtual Asset Special Law Expected to Be Submitted to the Executive Yuan by June
Peng Chin-long also indicated that the FSC is drafting the “Virtual Asset Service Law,” which is currently in the stage of collecting opinions from various sectors and is expected to be formally submitted to the Executive Yuan by June 30. He stressed that while it cannot be claimed that regulation will be perfect immediately, this special law will be an important step towards “more sound and comprehensive” management.
Will Cryptocurrency Businesses Be Trusted Like Banks in the Future?
In response to Legislator Lin Te-fu’s question about whether cryptocurrency businesses will be trusted by the public like banks in the future, Peng Chin-long replied that the special law will raise operational thresholds and safety for operators. Those remaining in the market will be subject to stricter conditions and better risk management. The development of the virtual asset market will be based on “safety and soundness.”
This incident highlights once again the gray area of the virtual asset industry under an incomplete regulatory framework. Although the FSC has initiated preliminary control through anti-money laundering mechanisms, it remains challenging to fully curb exaggerated advertising and potential illegal activities. With the promotion of the “Virtual Asset Service Law,” there is hope for further rectification of market order.
Risk Warning
Investing in cryptocurrency carries a high risk, and its prices may fluctuate dramatically, potentially resulting in the loss of your entire principal. Please assess the risks carefully.