According to a local news source, Taiwanese prosecutors charged a man on June 18 with using the cryptocurrency betting platform Polymarket to gamble on the 2024 Taiwan elections.

The accused, referred to as “Chen,” admitted to placing bets on the presidential and legislative outcomes, resulting in deferred prosecution and a fine due to his lack of prior convictions.

Polymarket is a popular betting platform in the crypto space. It allows users to bet on various topics, from important financial decisions to trivial matters.

According to the Shilin District Prosecutor’s Office, Chen bet approximately 472 USD Coin (USDC) on Polymarket, wagering that Ko Wen-Je of the Taiwan People’s Party would win the presidential election. Additionally, Chen bet 60 USDC that the Democratic Progressive Party (DPP) would win more legislative seats.

A detailed investigation revealed that Chen’s actions violated Taiwan’s laws on using the Internet to gamble on election results. Between December 12 and 17 last year, Chen’s bets were identified as violations under the “Public Servants Recall Act,” which criminalizes gambling on election results involving central public officials.

“The investigation concluded that the citizen surnamed Chen violated the ‘Using the Internet to Gamble Property on the Results of the President and Vice-President Elections’ under the President and Vice President Election Recall Act,” the prosecutors noted,

Considering his lack of prior convictions, Chen admitted to the crime and was granted deferred prosecution for a year. He was fined 30,000 yuan (approximately $4,000).

Taiwan has been actively investigating and warning its citizens against using crypto betting platforms like Polymarket to gamble on election results. In 2023, several individuals were summoned for their alleged involvement in such activities.

Notably, authorities have emphasized that engaging in these activities is illegal and could result in penalties, including imprisonment, detention, or substantial fines.

Taiwan’s Ministry of Justice has recently proposed stringent amendments to its anti-money laundering (AML) laws targeting cryptocurrency firms to address fraud and money laundering risks.

The proposed regulations mandate domestic and international crypto firms operating in Taiwan to register for AML compliance, with non-compliance resulting in imprisonment of up to two years and fines of up to $1.5 million.

The amendments include stricter registration requirements and penalties, encompassing third-party payment accounts and virtual asset accounts. If approved, these changes would elevate violations to criminal offenses, potentially leading to prison terms and hefty fines for offenders.

In addition, Binance has recently collaborated with Taiwan’s Ministry of Justice Investigation Bureau and the Taipei District Prosecutors Office to address a major cryptocurrency-related money laundering case involving nearly NT$200 million ($6 million).

Nine suspects were indicted on charges including aggravated fraud, money laundering, and violation of organized crime prevention regulations.

It is with certainty that Taiwan is advancing crypto regulation and industry self-regulation. The Financial Supervisory Commission (FSC) also recently announced plans to introduce new laws for digital assets by September 2024.