Unapproved Chinese Investment Establishes Virtual Currency Trading Platform in Taiwan
The Taipei District Prosecutors’ Office recently commanded an investigation by the Taipei City Investigation Bureau into the alleged unauthorized operation of a virtual currency trading platform by Asia Pacific EasyAnt Technology Co., Ltd.
This case involves China’s Xin Pai Media Group’s subsidiary, Xin Pai Blockchain, which established Asia Pacific EasyAnt in Taiwan in 2018 and operated the BitAsset virtual currency trading platform.
According to a report by United News Network, Hu Zhilong, the head of Asia Pacific EasyAnt, is suspected of concealing the company’s Chinese investment background and illegally soliciting the public to use the BitAsset platform for virtual currency trading without obtaining approval from the Ministry of Economic Affairs’ Investment Commission. The Taipei District Prosecutors’ Office commanded the investigation bureau to carry out a search yesterday and summoned Hu Zhilong and other related personnel. After questioning, Hu Zhilong was released on bail of NT$200,000, while three former executives were sent home.
Hu Zhilong previously held a key position at Xin Pai Blockchain and was responsible for establishing Asia Pacific EasyAnt when Xin Pai Blockchain decided to promote the BitAsset cryptocurrency exchange in Taiwan. However, the company began conducting virtual currency trading and other business activities in Taiwan without obtaining approval from the Ministry of Economic Affairs’ Investment Commission.
Is BitAsset a member of VASP Association? What will happen next?
Currently, BitAsset is one of the newly established Virtual Asset Service Providers (VASP) Association members in Taiwan and is also included in the list of 25 companies published by the Financial Supervisory Commission for complying with anti-money laundering regulations.
Due to the Financial Supervisory Commission’s requirement, all members of the VASP Association must complete an anti-money laundering declaration. Therefore, if BitAsset is found to have violated the anti-money laundering regulations in the future, it will lose its membership status in the association.
The Virtual Currency Association in Taiwan was officially established on June 13, 2024, with 24 founding members who have completed the Taiwan Financial Supervisory Commission’s anti-money laundering declaration. The list of members is as follows:
Category and Level of Members
Company Name
Operating Brand
Category A – Level A
Modern Wealth Technology Co., Ltd.
MaiCoin and MAX
Ace Digital Innovations Co., Ltd.
ACE
Rybit Co., Ltd.
Rybit
Linkchain Co., Ltd.
XREX
GoldBit Co., Ltd.
GoldBit
BitoPro Technology Co., Ltd.
BitoPro
Hoya Digital Technology Co., Ltd.
HOYA BIT
Sanchuan Token Co., Ltd.
BitstreetX
WoHeng Technology Co., Ltd. Taiwan Branch
WoHeng
Pioneering Digital Technology Co., Ltd.
ZONE Wallet
Category A – Level B
Crosslink Technology Co., Ltd.
Chainss
Cuike Technology Co., Ltd.
WOO Network
Bityacht Technology Co., Ltd.
Bityacht
Category B – Level A
Hong Zhu Digital Co., Ltd.
HzBit
Yin Tianxia International Management Consulting Co., Ltd.
CoinWorld
Category B – Level B
Taiwan Zhi Jing Co., Ltd.
Taiwan Zhi Jing
Sang Fei Si Te Co., Ltd.
ZomFast
Bitthink Technology Co., Ltd.
BitShine
Asia Pacific EasyAnt Technology Co., Ltd.
BitAsset
Quan Shi International Co., Ltd.
Trains
Xiahe Co., Ltd.
COINSHA
Yangjia Co., Ltd.
Buycoin
Yi Lu Fa Co., Ltd.
Yi Lu Fa
Asia Pacific EasyAnt Technology Co., Ltd. is classified as Category B – Level B, which means they are engaged in at least two of the following three businesses:
1. Exchange between virtual currency and New Taiwan Dollar, foreign currency issued by mainland China, Hong Kong, or Macau.
2. Exchange between virtual currencies.
3. Conducting virtual currency transfers.
However, they do not meet the following two conditions:
1. The company’s paid-in capital is at least NT$15 million, and it has at least 15 employees.
2. It has at least 100 employees.
Regardless, the explanation of the membership status of the Virtual Currency Business Association highlights BitAsset’s legal status and influence in Taiwan. However, this investigation has revealed its Chinese investment background and the issue of operating without permission.
The determination of legality or illegality may have different perspectives, and compromises may need to be made on one side.