Taiwanese local exchange BitShine was reported to be acquired in April this year. Dynamic Zone interviewed co-founder Chen Peiyun for more details and discovered that there are many foreign and local teams in the Taiwanese cryptocurrency industry currently seeking acquisition opportunities.
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(Background Information: ACE Exchange’s Pan Yizhang Charged with Fraud, Money Laundering, and Organized Crime, Formally Indicted by the Prosecutor’s Office Seeking Heavy Sentencing.)
Table of Contents:
Who is the Acquirer of BitShine? Foreign or Local Team?
Next Step for the Original BitShine Team: Moving Towards the Blockchain
Is Taiwan’s Exchange Market Undergoing a Transformation?
BitShine’s acquisition by the company CoinImagine Technology Limited was completed on January 3rd this year, and the news spread in the Taiwanese cryptocurrency industry, attracting a lot of attention from the community. It is said that the original team of CoinImagine and the new management team completed the handover procedures in April this year, and the exchange is currently suspended from external operations as the new management team reorganizes the business.
Dynamic Zone had the opportunity to interview Claire Chen, co-founder of CoinImagine Technology, for more details on the acquisition. She also commented on the recent changes in the Taiwanese VASP industry.
As the driving force behind the creation of BitShine, Chen Peiyun admitted that she was relieved after successfully selling the company externally. It is understood that the negotiation with the external team regarding the acquisition of BitShine took a year, starting in 2023 and involving preparations and negotiations.
As for the new management team, whether it is from overseas or within Taiwan, Chen Peiyun expressed that she cannot disclose this due to confidentiality clauses in the transaction contract. However, according to sources from Dynamic Zone, the new owner taking over BitShine is likely a domestic team and is quite knowledgeable about cryptocurrency trading business.
Chen Peiyun commented on the new management team, stating that they are “passionate, experienced, and visionary professionals” who will lead the company into a new development stage. With the current formal establishment of the VASP Association in Taiwan’s domestic exchanges, it remains to be seen whether the change in BitShine’s management team will disrupt the user ecosystem of domestic exchanges.
Next Step for the Original BitShine Team: Moving Towards the Blockchain
Since the acquisition conditions for BitShine included a complete change of the original team, Chen Peiyun, who leads the original team, revealed that their next goal after the exchange’s business concludes is to develop DeFi projects on the blockchain. The initial focus will be on deploying projects on several popular public chains with a large user base. However, the specific details and direction of the projects are not suitable for complete public disclosure at the moment, and they have not yet engaged with new funding sources.
Is Taiwan’s Exchange Market Undergoing a Transformation?
Dynamic Zone has received information from multiple sources that many Taiwanese cryptocurrency exchanges are currently in the legislative stage in Taiwan. Some exchanges have completed anti-money laundering registration and joined associations, but they feel that their traditional business models are being challenged. In addition, compliance costs have significantly increased, leading to multiple exchanges seeking new buyers to take over.
(Chart Source: The latest edition (March 2024) of the FSC’s list of 25 entities included in the anti-money laundering prevention list)
With the gradual formation of cryptocurrency legislation in Taiwan, foreign companies also have the idea of “quickly landing” by acquiring domestic exchanges. News of foreign companies seeking acquisition opportunities in Taiwan has been circulating in the past six months. The CEO of a large domestic exchange positively commented on this phenomenon, stating, “The era of compliance and intense competition has arrived. We are happy to see that the exchanges that choose to stay are those who take their work seriously, and the overall environment will be more user-friendly.”
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