Unauthorized Chinese Investment Sets Up Virtual Currency Trading Platform in Taiwan
The Taipei District Prosecutors Office recently directed the Taipei City Investigation Bureau to conduct a search operation and investigate Asia Pacific Eason Technology Co., Ltd. for allegedly operating a virtual currency trading platform in Taiwan without authorization.
This case involves New Media Group, a subsidiary of China’s Xin Pai Media Group, which established Asia Pacific Eason Technology Co., Ltd. in Taiwan in 2018 and operated the “BitAsset” virtual currency trading platform.
According to reports from United Daily News, Hu Zhilong, the head of Asia Pacific Eason Technology Co., Ltd., is suspected of concealing the company’s Chinese investment background and soliciting the use of the BitAsset platform for virtual currency trading without the approval of the Ministry of Economic Affairs Investment Commission. The Taipei District Prosecutors Office directed the Investigation Bureau to conduct a search operation yesterday and summoned Hu Zhilong and other related individuals. After the questioning, Hu Zhilong was released on bail of NT$200,000, and three former executives were also released.
Hu Zhilong previously held a key position in Xin Pai Media Group’s blockchain division and was responsible for establishing Asia Pacific Eason Technology Co., Ltd. when the group decided to promote the BitAsset virtual currency exchange platform in Taiwan. However, the company began conducting virtual currency trading activities in Taiwan without obtaining the approval of the Ministry of Economic Affairs Investment Commission.
Is BitAsset a member of the VASP Association? What will happen next?
Currently, BitAsset is one of the newly established members of the Virtual Assets Service Providers (VASP) Association in Taiwan and is also listed among the 25 companies that have completed the Anti-Money Laundering Compliance Statement published by the Financial Supervisory Commission.
Due to the requirement of the Financial Supervisory Commission, members of the Virtual Assets Service Providers Association must complete an anti-money laundering statement. Therefore, if BitAsset’s statement is revoked in the future, it will also lose its membership in the association.
The Virtual Assets Service Providers Association of Taiwan was officially established on June 13, 2024, with 24 founding members who have completed the Anti-Money Laundering Compliance Statement of the Financial Supervisory Commission. The list is as follows:
Member Category Level
Company Name
Operating Brand
A Class A Level
Modern Wealth Technology Co., Ltd.
MaiCoin and MAX
Ace Digital Innovations Co., Ltd.
ACE
Rybit Co., Ltd.
Rybit
LinkChain Co., Ltd.
XREX
Coinage Generation Technology Co., Ltd.
GoldBit
BitoPro Technology Co., Ltd.
BitoPro
Hoya Digital Technology Co., Ltd.
HOYA BIT
San Chuan Token Co., Ltd.
BitstreetX
Wo Heng Technology Co., Ltd. Taiwan Branch
WoHeng
Pioneer Digital Technology Co., Ltd.
ZONE Wallet
A Class B Level
Crosslink Technology Co., Ltd.
Chainss
Nebula Technologies Co., Ltd.
WOO Network
Bityacht Technology Co., Ltd.
Bityacht
B Class A Level
Hung Zhu Digital Co., Ltd.
HzBit
Yin Tianxia International Management Consulting Co., Ltd.
CoinWorld
B Class B Level
Taiwan Zhi Jing Co., Ltd.
Taiwan Zhi Jing
ZomFast Technology Co., Ltd.
ZomFast
CoinThought Technology Co., Ltd.
BitShine
Asia Pacific Eason Technology Co., Ltd.
BitAsset
Power International Co., Ltd.
Trains
Summer and Co., Ltd.
COINSHA
Yang Jia Co., Ltd.
Buycoin
Yi Lu Fa Co., Ltd.
Yi Lu Fa
Asia Pacific Eason Technology Co., Ltd. belongs to Class B Level and is involved in at least two of the following three businesses:
1. Exchange between virtual currency and New Taiwan Dollar, foreign currencies issued by Mainland China, Hong Kong, or Macau.
2. Exchange between virtual currencies.
3. Transfer of virtual currencies.
However, it does not meet the following two conditions:
1. The company’s paid-in capital is at least NT$15 million and has more than 15 employees.
2. The company has more than 100 employees.
Regardless, the membership in the Virtual Assets Service Providers Association explains that BitAsset has a certain level of legitimacy and influence in Taiwan, but this investigation has revealed its Chinese investment background and the issue of operating without authorization.
The determination of legality may have different interpretations, and it is believed that one party must compromise.