Response! Taiwan Cryptocurrency Association: ACE Exchange Withdraws from VASP Preparatory Group, Individuals Involved Are Former Officials

Former head of ACE Cryptocurrency Exchange involved in fraud case intensifies, the preparatory group of Virtual Asset Service Provider (VASP) promptly clarifies that in fact, since September 2023, the current head of ACE, Wang Chenhuan, has been involved in the preparatory group’s related affairs and is “not” involved in this case.
(Background:
Taiwan’s fraud MLM promotes “USDT to buy virtual currency blind boxes” illegally attracting over tens of millions of funds
)
(Background supplement:
Breaking News: ACE Exchange explodes with cryptocurrency fraud! Founder profited from selling “air coins” for many years and was arrested, estimated illegal gains exceeding 1 billion NTD (MoCoin)
)
The well-known ACE Cryptocurrency Exchange in Taiwan is increasingly involved in a fraud case, and as a result, the preparatory group of the Taiwan Virtual Asset Platform and Trading Business (VASP) Association has also been embroiled in the controversy. In response, the preparatory group held an emergency meeting yesterday (4th) and today (5th), released a public statement regarding the investigation of its members for suspected currency fraud.
Firstly, the preparatory group reaffirms its adherence to Article 10 of the “Guiding Principles” issued by the Financial Supervisory Commission of Taiwan on September 26, 2023, committing to promptly announce and clarify any major incidental events on the platform, demonstrating its commitment to self-discipline as industry practitioners.
The preparatory group emphasizes that any member involved in a major criminal investigation, whether during the preparatory stage or after the formal establishment of the association, should suspend participation in public affairs until the investigation is concluded and no indictment or final judgment is made.
Current head of ACE temporarily steps back from preparatory work
The preparatory group states that currently, ACE Exchange has proactively provided known facts and stated that its employees are assisting the investigation as witnesses. The head of the member in question was replaced by Wang Chenhuan, the managing partner of Jianye Law Office, on December 14, 2023, and is registered with the competent authority, holding 100% ownership and is not involved in the case.
Since September 2023, the current head of ACE, Wang Chenhuan, has been involved in related matters, but is “not” involved in this case. Wang Chenhuan expresses his apologies for the potential impact on the preparatory group and voluntarily decides to temporarily leave the preparatory group’s work to reduce controversy.
Preparatory group: Strict examination of virtual asset listing and delisting processes
The preparatory group states its respect for the statutory procedures of the judicial authorities and the legal rights of the relevant parties, and based on the principles of non-disclosure of investigations and presumption of innocence, awaits the final determination by the district prosecutor’s office or the court.
The preparatory group points out that when listing and delisting virtual assets, the operators should not only consider the white paper but also review the compliance of the assets with laws and regulations, liquidity, price manipulation risks, and the issuer’s sustainability. In addition, the content of virtual asset advertisements and business solicitation activities should also be strictly controlled to prevent improper, false statements, or fraudulent behavior.
This incident highlights the importance of pre-sale underwriting, Initial Exchange Offerings (IEOs), and the review mechanism for listing and delisting virtual assets. The preparatory group states that it will conduct in-depth discussions on these areas, formulate relevant industry standards to reduce the exploration of operators in unknown areas, mitigate risks, and avoid similar disputes from happening again.