| Chapter 4 Joint Defense Reporting System and Earmarking of Funds |
Section 4 Virtual Asset Accounts |
| Article 45 |
For a virtual asset account reported as a watch-listed virtual asset account, the virtual asset service provider shall verify the source of the report, classify it as a watch-listed virtual asset account, and immediately investigate related transactions of the account. If the virtual asset service provider finds that fraudulent virtual assets reported have been remitted to another virtual asset service provider, it shall notify the receiving virtual asset service provider of the remitted virtual assets.
The receiving virtual asset service provider shall immediately investigate the transactions of the recipient account after receiving the notification made by the previous virtual asset service provider in accordance with the preceding paragraph. If the virtual assets have been remitted to another account, the virtual asset service provider shall notify the next receiving virtual asset service provider of the outward transfer information.
If the receiving virtual asset service provider finds that fraudulent virtual assets reported have been withdrawn or remitted to an offshore virtual asset account, it shall notify the judicial police authority that reported the watch-listed virtual asset account.
The original judicial police authority that reported the watch-listed virtual asset account shall verify the information listed in the preceding paragraph. If the original judicial police authority believes the receiving virtual asset account shall also be classified as a watch-listed virtual asset account, it shall notify the relevant virtual asset service provider to classify such account as a watch-listed account. |
| Article 46 |
When a victim of fraud visits a virtual asset service provider during its business hours to report that he or she has been defrauded, the virtual asset service provider shall confirm his or her identity, the transfer of virtual assets or funds, remittance or transfer information, and the reason for the fraud. The victim shall then be asked to fill out an affidavit and call the 165 hotline. When a victim of fraud calls the customer service of a virtual asset service provider to report a fraud, the virtual asset service provider shall refer the victim to the 165 hotline.
The virtual asset service provider shall notify the receiving virtual asset service provider based on the affidavit and remittance or transfer information in the preceding paragraph. The inquiry and notification procedures in the preceding article apply mutatis mutandis to the notifications received by the virtual asset service provider of the recipient account from the previous virtual asset service provider.
If a fraud victim visits a virtual asset service provider in person to inform the service provider of the fraud, in accordance with Paragraph 1, the police authority shall send an officer to the virtual asset service provider within two hours to process the victim’s report and, if necessary, classify the virtual asset account as watch-listed.
After receiving the notification from the police authority in the preceding paragraph, the virtual asset service provider shall process the notification in accordance with the inquiry and notification procedures in the preceding article. |
| Article 47 |
The contents of the joint defense notifications in the preceding two articles shall be registered in the manner prescribed by the authority responsible for sending the watch-listed virtual asset account notification.
The contents of the joint defense notification, format of the notification form and the affidavit, and other detailed items for the notifications shall be formulated by the Taiwan Virtual Asset Service Provider Association and reported to the competent authority for recordation. |
| Article 48 |
After a virtual asset service provider receives a notification from the virtual asset service provider in accordance with Article 45 or 46, it shall earmark an amount based on the virtual assets or funds specified in the notification. If the account balance is less than the notified amount, the current balance of virtual assets or funds in the account shall be earmarked. The amount of virtual assets or funds earmarked by each virtual asset service provider for the same notification shall be capped at the amount of the fraudulent funds specified in the notification from the judicial police authority that provided the original notification for the virtual asset account or the amount of the fraudulent virtual assets or funds specified by the victim in his/her affidavit.
The virtual asset service provider shall notify the judicial police authority that reported the watch-listed virtual asset account of the results of the earmarking.
After receiving the notification in the preceding paragraph, the judicial police authority that reported the watch-listed virtual asset account shall verify the results as soon as possible and notify the virtual asset service provider within forty-eight hours from the time of the earmarking regarding whether the virtual asset account with the earmarked amount should be classified as watch-listed or if the earmarking should be released.
If the virtual asset service provider does not receive a notification for classifying the virtual asset account with the earmarked virtual assets or funds as watch-listed within the period specified in the preceding paragraph, the virtual asset service provider shall release the earmarking.
The virtual asset service provider may release the earmarked virtual assets or funds in advance if it determines, after careful verification, that there is no illegal or abnormal circumstance in the virtual asset account specified in the earmarking notification.
The virtual asset service provider shall continuously monitor the virtual asset accounts with earmarked virtual assets or funds, and if it determines that the account is an abnormal virtual asset account suspected of involvement in fraud, it may process the account in accordance with Paragraph 1, Article 8 of the Act. |
| Article 49 |
If the virtual assets or funds in a virtual asset account has been seized, preserved, prohibited, or subjected to similar measures under another law, and the virtual asset service provider subsequently receives a notification for the earmarking of proceeds of fraud in the deposit account, the virtual asset service provider shall still be required to earmark the proceeds of fraud in the form of virtual assets or funds, but priority shall be given to the order for the seizure, preservation, prohibition, or similar sanction for such virtual assets or funds. |
| Article 50 |
Virtual asset service providers should, to the extent possible, set up a dedicated 24-hour joint defense notification contact window to carry out the joint defense notification mechanisms.
Virtual asset service providers shall immediately notify the Taiwan Virtual Asset Service Provider Association when they set up the contact window in the preceding paragraph, and the same applies when the contact window is changed. |
| Article 51 |
If the customer of a virtual asset account with seized virtual assets or funds has any doubts regarding the seizure of his/her virtual assets or funds, the customer should contact the judicial police authority that reported the watch-listed virtual asset account to process the request. The virtual asset service provider shall also provide assistance where necessary. |