Since 2018, Chinese companies have set up a virtual currency trading platform called BitAsset in Taiwan without formal permission, which has attracted high attention from Taiwan’s judicial department. Recently, the Taipei District Prosecutors Office conducted a large-scale search and investigation on the relevant companies, and interviewed and processed the relevant personnel.
Taiwan VASP Operators
Despite the anti-money laundering declarations, incidents have occurred consecutively. After all, Bitgin Technology Co., Ltd. was involved in the 88 House money laundering case, and Ace Digital Innovations Co., Ltd. was involved in the aircoin fraud case. Now, the Asia Pacific Yiant Technology Co., Ltd., registered by BitAsset, is under investigation due to issues related to mainland capital.
Contents:
Asia Pacific Yiant Company Background
Hidden Mainland Capital Background
Search and Investigation Action
Handling of Responsible Individuals
Taiwan Cryptocurrency Companies Difficult to Investigate with Mainland Capital Involvement
BitAsset’s Response: The individuals involved are not current responsible personnel
VASP Association: Actively cooperating with regulation, only accepting members based on the anti-money laundering list
Since 2018, the “New Wave Blockchain” company under the Chinese mainland Xinli Media Group has established the “Asia Pacific Yiant Technology Co., Ltd.” in Taiwan without approval from the Taiwan Investment Commission (TIC). This company mainly operates the “BitAsset” virtual currency trading platform, aiming to provide virtual currency trading services to users in the Asia Pacific region.
The responsible person of Asia Pacific Yiant Company, Hu Zhilong, in order to conceal the mainland capital background of his company, engaged in business activities such as soliciting people to use the platform for virtual currency trading without formal permission from the competent authority in Taiwan. This behavior violates relevant laws and regulations in Taiwan.
The Taipei District Prosecutors Office and the Taipei City Investigation Bureau joined forces and conducted searches at 8 locations related to Asia Pacific Yiant Company yesterday. This action was based on the provisions of Article 40-1, Paragraph 1 of the “Act Governing Relations between the People of the Taiwan Area and the Mainland Area,” and an investigation was launched against Hu Zhilong and others.
After questioning, the Taipei District Prosecutors Office decided to release Hu Zhilong, the responsible person of Asia Pacific Yiant Company, on a bail of 200,000 New Taiwan Dollars. In addition, three former company executives related to the case were asked to leave and no further legal measures have been taken at this time.
This incident has raised high attention from society regarding the supervision of cross-border virtual currency trading platforms. With the rapid development of the virtual currency market, how to effectively regulate and prevent related legal risks has become a common concern of the Taiwan government and the public.
In fact, due to the ease of transfer of virtual currencies, there have been reports of mainland capital involvement in Taiwan’s cryptocurrency media, incubators, exchanges, and venture capital companies. This investigation into BitAsset, based on the fact that VASP (Virtual Asset Service Provider) is the current regulatory focus, also reveals this phenomenon.
Asia Pacific Yiant Company stated in a lawyer’s statement that the current responsible person, Guo Hongze, reached an agreement with the former responsible person, Guo Bocun, on November 9, 2023, under the notarization of a notary public, to acquire all the capital contributions. The company has changed three different responsible persons, and Hu Zhilong mentioned in the case is the first responsible person. After Guo Hongze took over, there has been no cooperation or contact with Xinli Group. Whether the first responsible person is involved with mainland capital is still under investigation.
Regarding the search of VASP Association members today, the VASP Association stated that it will continue to pay attention to the investigation and actions of the judicial authorities regarding the relevant cases and maintain close communication with the competent authority.
The association was established in accordance with the guiding principles issued by the Financial Supervisory Commission (FSC), and any operators who have complied with the anti-money laundering regulations are eligible to apply for membership. The association only includes members based on the anti-money laundering list and has no other screening or delisting authority.
After implementing anti-money laundering measures, operators must also cooperate with financial inspections. According to a report by the FSC Chairman, Pen Kuan Lung, in the Legislative Yuan, future VASP operators will have clear definitions and will transition from a reporting system to a registration system, and operators involved in illegal activities will also bear criminal responsibility.
The association has always maintained smooth communication with the competent authority and continues to monitor the development of the events.
BitAsset
Taiwan
Mainland Capital
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