The FTX incident has caused a lot of uncertainty in the cryptocurrency industry. Chain News interviewed four major fiat currency exchanges in Taiwan to see if they have any response to the FTX and Alameda crisis. The exchanges that have responded so far have all stated that they are not affected and have advised readers to evaluate the situation themselves.
ACE Exchange responded: No impact
Bito Exchange responded: No impact
MAX Exchange responded: No impact
BITGIN Exchange responded: No impact
HOYA Bit Exchange responded: No impact
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Below are the responses from ACE Exchange:
“I am David Pan Yizhang, the founder of ACE Elite Digital Asset Management Group. ACE Exchange is not affected by the FTX incident and our trading and operations are completely normal.
ACE is the first legal and compliant exchange in Taiwan, registered in Taiwan, and provides a trading platform for New Taiwan Dollar and cryptocurrencies. ACE has dual insurance, with “Cathay United Bank 100% New Taiwan Dollar Trust” and “CYBAVO Cryptocurrency Wallet System” through Nord Insurance Broker, ensuring the custody of customers’ cryptocurrency assets. ACE also entrusts a professional accounting firm to audit all user assets and guarantees the safety of all assets in ACE, with no misappropriation of customer assets and no high leverage or high-risk operations. We assure users that their assets in ACE are safe and provide 100% reserve-related proof, which will be announced in the coming weeks.
ACE offers the most diverse investment and wealth management functions and products in Taiwan, including spot trading, dollar-cost averaging, one-click buying and selling, grid trading, asset accumulation, and other best quantitative tools. We use an intelligent risk control system, diversified allocation strategies, rigorous risk diversification, and internally developed AI robots to automatically capture market signals, including mainstream market indicators, and monitor over 400+ markets in real-time to quickly grasp market mechanisms.
ACE ensures that the group and the industry adhere to the highest legal and compliance principles and takes the protection of customer assets as its core mission. We will go through every bull and bear market together!”
Below is the response from Bito Exchange:
“Bito Group would like to explain the FTX incident. Bito Group was not impacted by the FTX incident due to its high risk awareness.
Bito Pro Exchange’s business is to facilitate spot trading between users, so all operations are not affected by the FTX incident. Bito EX Wallet adopts a decentralized purchasing strategy to facilitate users’ convenient coin purchase and reserves a small amount of funds distributed among major global trading platforms. When a foreign research institution issued a warning about abnormal conditions on FTX last week, Bito temporarily suspended trading on FTX and withdrew funds to minimize risks.
Bito Group remains optimistic and enthusiastic about the blockchain and Web3 industry and technology. Even in a bear market, Bito will stand with users and provide functions that are more suitable for a bear market. However, due to recent volatility in the cryptocurrency market, users are reminded to exercise caution in their investment activities.”
Maicoin Group responded to Chain News as follows:
“The recent FTX incident has caused volatility and panic in the global cryptocurrency market. MaiCoin digital asset trading platform and MAX digital asset exchange have always adhered to the highest operational principles of “actively complying with laws and regulations, actively protecting users, and prudently controlling risks.” Both platforms have not listed the token FTT, and currently, the group and all platform users have not been directly affected.
MaiCoin and MAX platforms have not listed the token FTT or any other digital assets directly related to FTX. However, FTX.com is one of the institutional entities that the group has business dealings with for hedging and liquidity management. Currently, the group’s exposure balance on FTX.com is approximately USD 260,546.07, as shown in the table below, which does not have any significant impact on the group’s operations and customer asset security.
The group currently has more fiat and digital assets than liabilities, and its own funds and liquidity reserves can continue to support the group’s ongoing and stable operations. The group emphasizes that the Taiwan dollar assets of MaiCoin and MAX platforms are fully delivered to trusts held by financial institutions supervised by the Financial Supervisory Commission of the Republic of China. Users’ digital assets also have related insurance and the highest level of cyber security control. The board of directors of the group believes that upholding the highest standards and demanding self-improvement to gain the trust of users and the market is the group’s unshirkable mission.
In addition, when selecting business partners and counterparties, the group also adheres to the principle of prior cautious evaluation to ensure that it can provide customers with the most satisfactory experience without violating risk control and corporate governance principles.
The continuous challenges in the macroeconomic environment and the sudden events of individual startups will once again make the global digital asset industry go through a process of survival of the fittest. Since its establishment in 2013, the group has been actively striving for counter-cyclical growth during the industry consolidation period, continuously innovating, and making continuous efforts to create a more diverse and open future for financial technology. On behalf of the board of directors of the group, we would like to express our sincere gratitude to all users, investors, and employees who support us.”
Below is the response from BITGIN Exchange:
“BITGIN Exchange is not affected by the FTX incident, and all user assets are very secure.
BITGIN Exchange has a different business model from other exchanges, and our assets are continuously liquid, so the FTX incident has not had any impact on BITGIN.
In terms of platform risk in the cryptocurrency market, BITGIN always adheres to the principle of “actively taking the initiative, fully cooperating, and supporting.” We look forward to and support the Taiwanese government’s proposal of more comprehensive and strict regulatory systems for cryptocurrencies to provide a safer environment for investors and protect the security of all investors’ assets.
The application of blockchain is gradually emerging, and the essence of blockchain is decentralization, on-chain operation, public transparency, and verifiability. BITGIN has always maintained a cautious and optimistic attitude towards blockchain. We believe that in the future, decentralized exchanges and applications will be able to fully utilize their advantages, and BITGIN believes that the future can move towards a more decentralized direction. Whether it is GameFI, DeFi, or decentralized identity authentication, BITGIN can make it easier, safer, and protected for all users to operate through BITGIN.”
HOYA Bit Exchange responded as follows:
“HOYA Bit cryptocurrency exchange has not been affected by the FTX incident. In terms of enhancing user asset management services, HOYA Bit cryptocurrency exchange has established asset custody and insurance mechanisms for both New Taiwan Dollar and cryptocurrencies. For New Taiwan Dollar, HOYA Bit cooperates with Cathay United Bank for trust services, entrusting Cathay United Bank to provide trust services for New Taiwan Dollar custody to ensure the independence of users’ New Taiwan Dollar assets. For cryptocurrencies, HOYA Bit cooperates with Cybavo and uses highly secure digital asset wallets. At the same time, each user is insured by Standard & Poor’s AA-rated international insurance company Lockton Insurance through Nord Insurance Broker, ensuring the protection of users’ digital assets.
We believe that the occurrence of the FTX incident provides an opportunity for industry players and investors to learn from it. When launching any token products, cryptocurrency exchanges should conduct proper risk assessments and should not expand or launch speculative products arbitrarily. It is important to have stricter checks for investors who trust the exchanges. Even large financial institutions and traditional banks trusted by the public cannot withstand customer runs. Founder and CEO Zoe also called for cooperation rather than attacks among domestic cryptocurrency industry players in the face of liquidity issues. Only through the joint efforts of everyone can the cryptocurrency industry as a whole thrive and mature. Many cryptocurrency investors in Taiwan have suffered heavy losses in the FTX incident, but it is now even more important to establish correct cryptocurrency investment concepts. Investors must have a good understanding of the tokens they choose to invest in, and factors such as the global circulation scale, security, and stability of the tokens should be prioritized. Research and risk assessment should be done before investing.”
The article also mentions that Binance has introduced partial asset proof (PoR) to enhance the transparency of assets on the exchange. However, the feasibility of this for small and medium-sized exchanges still needs to be verified.
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Bito
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