Inspection and investigation of BitAsset, found mainland-owned background and involvement in illegal operations
According to Lianhe News Network, Xinpai Blockchain, a subsidiary of China Xinpai Media Group, has established Asia Pacific Eant Technology Co., Ltd. and a virtual currency trading platform in Taiwan since 2018 without permission from the investment review committee of the competent authority. BitAsset.
The Taipei District Prosecutor's Office found that Hu Zhilong operated a virtual currency trading business in Taiwan without permission from the competent authorities in order to cover up the mainland-owned background of Asia Pacific Eant Company. The prosecutor searched 8 locations yesterday and interviewed Hu Zhilong to explain the case. After the interrogation, he was released on bail of 200,000 yuan, and the remaining three former persons in charge were invited back.
BitAsset’s public response
In response to the above accusations, BitAsset publicly responded through a lawyer’s letter as follows:
Asia Pacific Eant Company is a company legally established and registered in China, and is a "virtual currency platform and trading business enterprise that has completed the compliance statement of money laundering prevention laws" announced by the China Financial Supervision and Administration Commission. The current person in charge, Guo Hongze, was born in the Republic of China (below) Same) On November 9, 2012, after being notarized by a notary, an agreement was reached with the former person in charge, Guo Baicun, that Guo Hongze would personally acquire Guo Baicun’s entire capital contribution to Asia-Pacific Eant Company. Therefore, Asia-Pacific Eant Company It is currently owned and operated entirely by Guo Hongze personally without any mainland capital participation.
So far, Asia Pacific Easy has changed three different persons in charge. As for the "Hu Zhilong" mentioned in the press release, he is the first person in charge of Asia Pacific Easy and is not the current person in charge. The object of the transfer of capital contribution negotiated by Guo Hongze on November 9, 2012.
Since the current head of Asia Pacific Eant, Guo Hongze, took over the operation, it has not had any joint venture, partnership or relationship with the "Xinpai Blockchain" technology company, a subsidiary of Xinpai Media Group in mainland China, mentioned in the press release. Cooperation and other business dealings; as for whether there was indeed mainland capital participation during the operation of Asia Pacific Eant Company by its first person in charge, "Hu Zhilong", this has yet to be investigated and clarified.
To sum up, Asia Pacific Eant currently operates independently in my country as a virtual currency physical trading store without any mainland capital participation. This is hereby clarified. ” and other words.
Source: Fa Ming Law Firm
Statement from the VASP Association
As BitAsset Exchange has completed the Crypto Exchange Money Laundering Prevention Act Compliance Statement and joined the "Virtual Currency Business Association of the Republic of China" (VASP Association) established on the 13th of this month, the association said in response to this incident:
In response to today's search for members of the VASP Association, the VASP Association stated that it will continue to pay attention to the investigation and actions of the judicial authorities on relevant cases and maintain close communication with the competent authorities.
The Association was established in accordance with the guiding principles issued by the Financial Supervisory Commission. As long as the industry has completed the Money Laundering Prevention Act Compliance Statement, they are eligible to apply to join the Association. The association will recruit members according to the anti-virus list and has no other rights and responsibilities to screen or remove members.
Business operators must also cooperate with financial inspections after passing money laundering prevention controls. According to the previous report of Peng Jinlong, chairman of the Financial Supervisory Commission, in the Legislative Yuan, VASP operators will be clearly defined in the future and will switch from a reporting system to a registration system. If they violate the law, they will also bear criminal liability.
The Association has maintained open communication with the competent authorities and continues to pay attention to the development of the incident.
Establishment and supervision of VASP Association
The Taiwan Virtual Currency Business Association was officially established on June 13, 2024, and includes 24 businesses that have completed the Financial Supervisory Commission’s money laundering prevention legal compliance statement as founding members. The Association stated that it will continue to pay attention to the investigation of the case by judicial authorities and maintain close communication with the competent authorities.
This incident revealed the challenges of regulating cross-border virtual currency trading platforms. In the future, with the rapid development of the market, how to effectively supervise and prevent relevant legal risks has become a topic of common concern to the government and the industry. BitAsset’s response and the VASP Association’s statement show Taiwan’s rigorous attitude towards virtual currency regulation and also reflect the industry’s response strategies in the face of regulatory disturbances.
