Recently, the Taiwan Financial Supervisory Commission (FSC) Securities and Futures Bureau announced a fine of 1.5 million New Taiwan Dollars against San Chuan Token Co., Ltd. This company is the parent of BitstreetX exchange, and this penalty makes it the fifth virtual asset company to be punished for violations this year.

The Financial Supervisory Commission conducted a special inspection on San Chuan Token for anti-money laundering and counter-terrorism financing operations from November to December last year. The inspection results indicated that the company had serious deficiencies in three key areas: customer due diligence, transaction monitoring, and record-keeping.

Specifically, San Chuan Token failed to obtain the names of senior management personnel of legal entity clients as required during customer due diligence, and did not conduct sufficient checks on high-risk clients. In terms of transaction monitoring, the company failed to establish a comprehensive mechanism for monitoring abnormal transactions. Furthermore, there are also significant issues in record-keeping.

This penalty is based on the relevant provisions of the Anti-Money Laundering Act, reflecting the regulatory authorities' strict requirements for compliant operations in the virtual asset industry. It is worth noting that Bit Street Exchange, under San Chuan Token, previously collaborated with KGI Bank to launch the 'Coin Enjoy Card' service, which has a certain level of recognition in the Taiwanese virtual asset market.

As of now, San Chuan Token and its subsidiary Bit Street exchange have not made an official statement regarding this matter. This penalty incident once again highlights the challenges faced by the virtual asset industry in terms of compliance operations, and warns other market participants to pay more attention to regulatory requirements such as anti-money laundering.

As the virtual asset market continues to evolve, regulatory agencies are also increasing their oversight of the industry. How companies find a balance between innovation and compliance will become one of the key issues for the future development of the virtual asset industry.