Taiwan Banks Freeze Securities Accounts in Anti-Fraud Push
Starting September, Taiwanese banks have upgraded anti-fraud risk control systems, triggering automated bank account freezes on dormant or unusual securities settlement accounts. The new measures target long-inactive accounts, large unexpected transactions and crypto exchange fund flows. Customers now must visit a branch to unlock frozen accounts or seek online assistance. Several users reported forced closures of securities settlement accounts at Taishin Bank, risking settlement defaults and requiring two-hour trips for branch reactivation. Banks rely on AI-driven risk assessments, often without prior notice. Traders should monitor bank risk control policies, keep transaction records and consider over-the-counter services for large crypto-related transfers. The bank account freeze has raised concerns about liquidity and settlement reliability but primarily aims to curb rising fraud cases.
Neutral
The news of automated bank account freezes in Taiwan reflects operational risk control enhancements rather than fundamental shifts in cryptocurrency markets. While traders may face temporary liquidity constraints, similar past events—such as local banks imposing stricter AML checks—have not caused significant price movements. In the short term, we might see some volatility in trading volumes as users adjust to branch-based reactivation processes. Over the long term, improved fraud prevention can foster greater institutional trust without directly affecting crypto asset valuations. Therefore, this development is classified as neutral: it impacts user convenience and settlement procedures but does not signal bullish or bearish market sentiment.