Former head of BitAsset Exchange (Asia Pacific Yiante Technology Co., Ltd.) Hu Zhilong was summoned by the Taipei District Prosecutors Office and is suspected of establishing a company with Mainland Chinese capital without permission. The current operator of the company has officially responded to the situation, and the Taiwan VASP Association has also issued a statement.
Background:
The Taiwan Virtual Currency Association was officially established: BitTiger Zheng Guangtai was appointed as chairman, and XREX Xiao Huizong as vice chairman, with the formulation of “Self-discipline Regulations” as the primary task.
The Taipei District Prosecutors Office directed 8 personnel to search the BitAsset Exchange (Asia Pacific Yiante Technology Co., Ltd.) yesterday and summoned former company head Hu Zhilong and others. After questioning, Hu Zhilong was released on bail of NT$200,000 for suspected offenses under the “Act Governing Relations between the People of the Taiwan Area and the Mainland Area,” while the others were sent back.
It is reported that BitAsset was involved in establishing a company in Taiwan in 2018 with funds from the China-based XinPai Media Group subsidiary “XinPai Blockchain” without approval from the Ministry of Economic Affairs.
BitAsset has responded to the issue today through a lawyer’s letter:
(1) Asia Pacific Yiante Company is a legally registered company in our country and is a “Virtual Currency Platform and Trading Business Operator that has declared compliance with anti-money laundering regulations” announced by the Financial Supervisory Commission of our country. The current head Guo Hongze, on November 9, 112 (Republic of China year), reached an agreement with former head Guo Bocun through a notary public to individually acquire all the investment in Asia Pacific Yiante Company from Guo Bocun. Therefore, Asia Pacific Yiante Company is now wholly owned and operated by Guo Hongze personally, with no Mainland Chinese involvement.
(2) Asia Pacific Yiante Company has had 3 different heads so far. The person mentioned in the news release, “Hu Zhilong,” was the first head of Asia Pacific Yiante Company and is not the target of the investment transfer negotiations conducted by the current head Guo Hongze on November 9, 112.
(3) Since the current head Guo Hongze took over the operation of Asia Pacific Yiante Company, there has been no joint venture, partnership, or cooperation in business with the Mainland China XinPai Media Group subsidiary “XinPai Blockchain” mentioned in the news release. Whether there was Mainland Chinese involvement during the tenure of the first head “Hu Zhilong” of Asia Pacific Yiante Company is still pending clarification by the authorities.
(4) In summary, Asia Pacific Yiante Company is currently operating independently in our country through physical cryptocurrency trading outlets, with no Mainland Chinese involvement. This is to clarify.
According to the Ministry of Economic Affairs’ business registration data, the current head of Asia Pacific Yiante Company is indeed Guo Hongze.
Response from the VASP Association:
As BitAsset Exchange had already completed the Declaration of Compliance with Anti-Money Laundering Regulations for Cryptocurrency Exchanges and joined the “Republic of China Virtual Currency Business Association” (referred to as VASP Association) officially established on the 13th of this month, the Association also responded to the issue:
Regarding the search of VASP Association members today, the Association stated that it will continue to monitor the investigation and actions of the judicial authorities and maintain close communication with the regulatory authorities.
The Association was established in accordance with the guidance principles issued by the Financial Supervisory Commission, and any operator who has completed the Declaration of Compliance with Anti-Money Laundering Regulations is eligible to apply for membership. The Association includes members based on the anti-money laundering list, without any other screening or exclusion authority.
After implementing anti-money laundering measures, operators must also cooperate with financial inspections. According to a report by the Chairperson of the Financial Supervisory Commission, Peng Jinlong, at the Legislative Yuan, VASP operators will have a clear definition in the future and will transition from a reporting system to a registration system, with operators facing criminal liability in case of illegal activities.
The Association has maintained open communication with the regulatory authorities and will continue to monitor the development of the events.