Premier Cho Jung-tai (卓榮泰) outlined a three-prong approach on Wednesday to combat the rising threat of fraud and virtual asset crimes: heavier penalties, faster interception, and stronger victim protection. Chairing a national security briefing, Cho stressed using cross-ministerial cooperation and advanced technology to tackle evolving scams.

Despite Taiwan’s strongest safety record, authorities are escalating crackdowns on organized crime. A recent nationwide sweep dismantled 58 criminal rings, apprehended 285 suspects, and seized NT$60.88 million (US$1.9 million) in illicit funds. Cho urged law enforcement to leverage big data against criminal syndicates and highlighted the recent implementation of the revised Anti-Fraud Act, also known as the Fraud Crime Hazard Prevention Act.

The government is also addressing emerging threats like xylazine, recently classified as a level 2 narcotic. With virtual currencies increasingly driving fraud losses, the Financial Supervisory Commission (FSC) is accelerating regulations to identify fraudulent crypto wallets and trace illicit financial flows, particularly those involving Tether.

While over NT$10 billion (US$314 million) in fraudulent assets have been frozen, the complex investigation has delayed restitution. The Justice Ministry is collaborating with crypto platforms to expedite the return of these funds. Additionally, the Cabinet recently advanced the draft of the Virtual Asset Service Act (Draft Act) to establish regulatory frameworks, protect investors, and dismantle fraud networks.