Taiwan has banned Xiaohongshu for one year! Since 1706, scam cases have resulted in losses of 790 million, exposing cybersecurity vulnerabilities.

Due to concerns over fraudulent activities, Taiwan will ban the social media app Xiaohongshu (also known as RedNote) for one year. Since last year, the app has been involved in 1,706 fraud cases with losses totaling about NT$248 million (approximately US$7.9 million), affecting at least 3 million users in Taiwan. In October, Taiwan reached out to Xiaohongshu to ask how it could modify its operations to comply with local laws but received no response.

1,706 Fraud Cases Expose Platform Regulatory Loopholes

On December 4, Taiwan issued a statement saying that since last year, Xiaohongshu has been involved in 1,706 fraud cases with losses totaling about NT$248 million (approximately US$7.9 million). The statement noted that because the app operates outside of Taiwan, victims are unable to obtain any compensation. These numbers only reflect reported cases; the actual number of victims and losses may be much higher, as many victims choose not to report due to shame or a belief that recovery is impossible.

According to local media reports, the Criminal Investigation Bureau said that since last year, more than 1,700 fraud cases in Taiwan have been traced to this app, with total losses exceeding NT$247 million. The types of fraud are diverse, including fake seller scams, investment scams, romance scams, and fake customer service scams. Xiaohongshu’s shopping features make it a hotbed for fraud, as scammers can create seemingly legitimate merchant accounts, post attractive products and prices, and lure users into off-platform transactions.

The Four Major Types of Xiaohongshu Scams

Fake Seller Scams: Posting low-priced items to lure users into private transactions and then disappearing

Investment Scams: Impersonating financial experts to recommend fake investment projects

Romance Scams: Pretending to be a romantic interest and then asking for money for various reasons

Fake Customer Service Scams: Impersonating platform support to steal account passwords or request transfers

The average loss per fraud case in Taiwan is about NT$145,000 (approximately US$4,600), which is a huge amount for many victims. Worse still, since Xiaohongshu operates outside Taiwan and has no local office, victims have almost no legal recourse. Even if they report the case, Taiwanese police can only log the incident but cannot freeze the scammer’s assets or bring them to justice.

Taiwanese news media report that the app was banned due to a series of fraud cases and its failure to meet data security standards, putting users at risk. Data security requirements include encrypted protection of user data, secure storage of payment information, and prevention of unauthorized data access. Xiaohongshu has clearly failed to meet these regulatory requirements, putting user data at risk of exposure.

October Outreach Ignored, Xiaohongshu Refuses Communication

In October, Taiwanese officials contacted Xiaohongshu to ask how the app could modify its operations to comply with local laws but received no response. The Ministry of Foreign Affairs also noted that other international social media platforms in Taiwan “comply with their legal obligations,” including hiring local legal representatives. This contrast highlights Xiaohongshu’s unique and uncooperative attitude.

Taiwan’s requirement that social media platforms establish a local legal representative is based on international best practices such as the EU’s DSA (Digital Services Act). A local legal representative is responsible for receiving legal documents from Taiwan, handling user complaints, cooperating with law enforcement investigations, and ensuring platform operations comply with local laws. Facebook, Google, Twitter, and other international platforms have legal representatives or subsidiaries in Taiwan, allowing local courts to exercise jurisdiction in case of disputes.

Xiaohongshu’s refusal to respond to Taiwan’s official communication shows it likely has no intention to operate in compliance with Taiwanese regulations. The consequences are twofold: regulatory bodies cannot communicate with the platform to resolve issues and can only take mandatory action; meanwhile, affected users completely lose the possibility of seeking compensation, as there is no local legal entity to sue.

According to Taiwan’s news media citing the Minister of the Interior, the app operator has no local office and has not responded to requests from regulators for improved cybersecurity measures. This total lack of response has left Taiwanese regulators with no choice but to take the strictest blocking measures. Xiaohongshu has not responded to emailed requests for comment, and this continuing silence confirms Taiwan’s judgment: Xiaohongshu has no intention of operating legally and compliantly in Taiwan.

Xiaohongshu Violates Taiwan Regulatory Requirements

No Local Office: Cannot receive legal documents or coordinate with law enforcement

No Legal Representative: Victims cannot sue in Taiwanese courts

Refusal to Respond to Regulators: Complete silence after official communication in October

No Improvement of Cybersecurity Measures: Severe deficiencies in anti-fraud mechanisms

No Compensation Mechanism: Victims have no recourse and losses cannot be recovered

3 Million Users Disconnected, ISPs Enforce Technical Block

According to local media, Taiwanese ISPs have been ordered to block the app, affecting at least 3 million users. A BBC investigation in Taiwan found that some users can no longer access the platform. Instead, the app displays a message stating it cannot be used due to “security restrictions.” These 3 million users represent about 13% of Taiwan’s total population, indicating the app’s high penetration rate, especially among young people and fashion/beauty enthusiasts.

Technical blocking typically includes DNS and IP blocking. DNS blocking means ISPs alter their DNS servers so that when users try to access Xiaohongshu’s domain, it cannot be resolved to the correct IP address. IP blocking directly stops connection requests to Xiaohongshu’s server IPs. Used together, these methods effectively prevent most ordinary users from accessing the platform.

Launched in 2013, Xiaohongshu has hundreds of millions of users worldwide, especially popular in Asia. This year, as discussions over a US TikTok ban intensified, American users began searching for alternatives, leading to growth in Xiaohongshu’s user base. The app is similar to TikTok, with built-in shopping features, combining social media, short videos, and e-commerce.

While this multifunctional integration increases user engagement, it also creates more opportunities for fraud. When social, content, and transactions are combined on one platform, users are more likely to let their guard down, allowing scammers to build trust through content and then lure victims into off-platform transactions. Taiwan’s decision to block the app is essentially a consumer protection measure, aimed at shielding users from unrecoverable fraud losses.

Frequently Asked Questions (FAQ)

Why did Taiwan block Xiaohongshu?

The main reason is rampant fraud, with 1,706 cases and NT$790 million (US$7.9 million) in losses since last year. Xiaohongshu refused to establish a local office in Taiwan, did not respond to regulatory requests to improve cybersecurity, and victims cannot obtain compensation.

How long will the block last?

The government announced a one-year temporary ban. Whether it will be extended depends on whether Xiaohongshu cooperates with Taiwan’s regulatory requirements. If it is willing to set up a local office, hire a legal representative, and improve anti-fraud mechanisms, the ban may be lifted.

Can Taiwanese users still access Xiaohongshu with a VPN?

Technically it’s possible but may be illegal. The ban is enforced at the ISP level, and using a VPN can bypass it. But if Taiwan explicitly bans access, using a VPN might constitute a violation. Regulations are not yet clear—wait for further official guidance.

How should the 3 million Taiwanese users respond?

It’s recommended to switch to compliant alternatives such as Instagram, Facebook, or Line Shopping. These platforms have local offices in Taiwan, so in case of fraud, users can seek legal recourse. Users should still be vigilant about scams, but at least there are basic consumer protection mechanisms.

Will other social media platforms be blocked?

It depends on their cooperation with Taiwanese regulators. Facebook, Instagram, Twitter, etc. all have legal representatives in Taiwan and comply with regulatory requirements, so there is currently no risk of being blocked. The key is whether platforms are willing to assume local responsibility and improve anti-fraud mechanisms.