Taiwan VASP Association Preparatory Committee has been facing continuous controversies during the preparatory period. After the involvement in the “88 Mansion” money laundering case with the cryptocurrency exchange Bitgin, it was revealed that the former head of ACE, Pan Yizhang, was involved in a fraud case related to the 2019 Initial Exchange Offering (IEO). The preparatory committee responded to this issue on January 5th.
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No current ACE employees involved, former head did not participate in preparatory committee affairs
Current ACE CEO willing to temporarily withdraw from preparatory work
Preparatory committee: Awaiting investigation results
Preparatory committee: Highlighting the importance of industry standards and no longer letting operators grope in the dark
The VASP Association Preparatory Committee held an emergency meeting on January 4th due to the suspicion of fraud involving the cryptocurrencies listed by the committee members. According to ACE’s explanation to the preparatory committee, its current employees have been assisting the investigation as witnesses. The person involved in the fraud case has been changed to Wang Chenhuan, the current director of Jianye Law Firm, who holds 100% of the shares and is currently registered with the regulatory authority.
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The preparatory committee also stated that since September last year, the preparatory committee members have been involved with the current CEO, Wang Chenhuan, and not the individuals involved in the current case.
Although the individuals involved in the case were former executives, ACE’s current CEO, Wang Chenhuan, still expressed apologies for the impact on the preparatory committee and voluntarily decided to temporarily withdraw from the preparatory work to avoid controversies.
The preparatory committee stated: “Based on the principles of non-disclosure of investigations and the presumption of innocence, this preparatory committee fully respects the legal procedures of the judicial authorities and the legal rights of the relevant parties involved in the investigation. It also respects the explanations provided by the preparatory committee members involved in the investigation, and awaits the final determination by the district prosecutor’s office or the court.”
Highlighting the importance of industry standards and no longer letting operators grope in the dark
The preparatory committee emphasized that Principle 4 of the Financial Supervisory Commission’s guidance requires operators to establish a proper review mechanism and retain written records when listing or delisting virtual assets. In addition to the whitepaper, the compliance with laws and regulations, the liquidity and manipulation of virtual assets, the issuer’s sustainability, the content of advertisements and business solicitations, and any false, fraudulent, deceptive, or other misleading actions should also be reviewed.
This incident highlights the importance of pre-sale subscription, Initial Exchange Offering (IEO), and review mechanisms for listing and delisting, as well as the importance of controlling business solicitations and advertisement content.
The preparatory committee stated that after the establishment of the association, discussions on self-regulatory norms will be initiated as soon as possible to establish industry standards, allowing operators to explore without being in the dark and avoiding similar disputes.
ACE
VASP
Taiwan
Pan Yizhang
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MOCT Coin counterattacks ACE Exchange! Police confiscated cash exceeding “100 million yuan” from Lin’s home
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