Since 2018, Chinese mainland companies have established virtual currency trading platforms in Taiwan under the name BitAsset without formal permission, causing high attention from Taiwan’s judicial department. Recently, the Taipei District Prosecutor’s Office conducted a large-scale search and investigation of the related companies, and summoned and dealt with the responsible individuals.
Despite passing anti-money laundering declarations, incidents have occurred consecutively. BITGIN Technology Co., Ltd. was involved in the 88 Mansion money laundering case, ACE Digital Innovation Co., Ltd. was implicated in an air currency fraud case, and now Asia Pacific Yian Technology Co., Ltd., registered by BitAsset, is under investigation due to issues related to mainland investment.
Asia Pacific Yian Technology Company Background
Concealed Mainland Investment Background
Search and Investigation Action
Outcome of Responsible Individuals
Taiwanese companies involved with mainland investment are difficult to investigate
BitAsset Response: Individuals involved are not current responsible persons
VASP Association: Actively cooperating with regulation, only admitting members based on anti-money laundering lists
Since 2018, the “Newblockchain” company under the New Media Group from the Chinese mainland established Asia Pacific Yian Technology Co., Ltd. in Taiwan without approval from the Taiwan Investment Review Commission. This company primarily operates the BitAsset virtual currency trading platform, aiming to provide virtual currency trading services for users in the Asia Pacific region.
The responsible person of Asia Pacific Yian Technology, Hu Zhilong, in order to conceal the mainland investment background of the company, engaged in activities such as soliciting the public to use the platform for virtual currency trading in Taiwan without formal permission from the competent authority. This behavior violates relevant laws in Taiwan.
The Taipei District Prosecutor’s Office and the Taipei Investigation Bureau jointly conducted searches at 8 locations related to Asia Pacific Yian Technology yesterday. This action was carried out based on Article 40-1 of the Act Governing Relations between the People of the Taiwan Area and the Mainland Area, investigating Hu Zhilong and others.
After questioning, the Taipei District Prosecutor’s Office decided to allow Hu Zhilong, the responsible person of Asia Pacific Yian Technology, to post bail of 200,000 New Taiwan Dollars. In addition, three former responsible persons related to the case were asked to return and no further legal measures were taken.
This incident has sparked high attention from society regarding the regulation of cross-border virtual currency trading platforms. With the rapid development of the virtual currency market, effectively regulating and preventing related legal risks has become a common concern for the government and the people in Taiwan.
In fact, in the Taiwanese currency circle, media, incubators, exchanges, and venture capital firms have heard of mainland investment due to the easy transferability of virtual currencies. This investigation into BitAsset based on VASP (Virtual Asset Service Provider) being the current regulatory focus has revealed this phenomenon.
Asia Pacific Yian Technology Company, through a lawyer’s statement, stated that the current responsible person, Guo Hongze, reached an agreement with the former responsible person, Guo Bacun, on November 9, 2023, under notarization, to acquire all the contributions. The company has changed responsible persons three times, and Hu Zhilong mentioned in the case was the first responsible person. After Guo Hongze took over, there was no cooperation with the New Media Group. Whether the first responsible person was involved in mainland investment is still under investigation.
Regarding the search of VASP Association members today, VASP Association stated that they will continue to monitor the investigation and actions of judicial authorities on related cases and maintain close communication with the competent authority.
The association was established based on the guidance principles issued by the Financial Supervisory Commission, and as long as operators have completed anti-money laundering compliance statements, they are eligible to apply for membership. The association admits members based on anti-money laundering lists without any other screening or exclusion responsibilities.
After anti-money laundering compliance, operators also need to cooperate with financial inspections. According to the report of Chairman Peng Jinlong of the Financial Supervisory Commission in the Legislative Yuan, in the future, VASP operators will have a clear definition, and will transition from a reporting system to a registration system. Operators involved in illegal activities will also bear criminal liability.
The association has always maintained smooth communication with the competent authority and continues to monitor the development of events.