The former head of BitAsset exchange (Asia Pacific Easy Tech Co., Ltd.), Hu Zhilong, was summoned by the Taiwan authorities and was involved in the establishment of the company with Mainland Chinese capital without permission. The company’s current operating party has officially responded, and the Taiwan VASP Association has also issued a statement.
Background:
The Taiwan Virtual Currency Association is officially established: BitTrust Zheng Guangtai serves as chairman, and XREX Xiao Huizong as vice chairman, with the formulation of “self-discipline regulations” as the primary task.
The Taiwan authorities directed the investigation team to search BitAsset exchange (Asia Pacific Easy Tech Co., Ltd.) and summoned former company head Hu Zhilong and others. After questioning, Hu Zhilong was released on bail of NT$200,000 for suspected crimes under the “Act Governing Relations between the People of the Taiwan Area and the Mainland Area” and other laws, and the others were asked to leave.
It is reported that BitAsset was involved in establishing a company in Taiwan with funds from a subsidiary of the China-based New Palme Media Group, “New Palme Blockchain,” without the approval of the Ministry of Economic Affairs.
BitAsset has responded to this issue today through a lawyer’s letter:
(1) Asia Pacific Easy Tech Co., Ltd. is a company legally registered in Taiwan and is a “virtual currency platform and trading business operator that has completed the statement of compliance with anti-money laundering laws and regulations” announced by the Financial Supervisory Commission of Taiwan. The current head, Guo Hongze, personally acquired the total capital contribution of Asia Pacific Easy Tech Co., Ltd. from the former head, Guo Baicun, on November 9, 112 (Republic of China calendar), not involving any Mainland Chinese capital.
(2) Asia Pacific Easy Tech Co., Ltd. has had three different heads up to now. The “Hu Zhilong” mentioned in the news release is the first head of Asia Pacific Easy Tech Co., Ltd., and is not the target of the capital transfer negotiation on November 9, 112 (Republic of China calendar) by the current head, Guo Hongze.
(3) Since Guo Hongze took over the operation of Asia Pacific Easy Tech Co., Ltd., there has been no business dealings such as joint venture, partnership, or cooperation with the Mainland Chinese New Palme Media Group subsidiary “New Palme Blockchain” mentioned in the news release. As for whether Mainland Chinese capital was involved during the term of the first head “Hu Zhilong” of Asia Pacific Easy Tech Co., Ltd., this remains to be clarified by the investigation.
(4) In summary, Asia Pacific Easy Tech Co., Ltd. is currently independently operated in Taiwan as a physical cryptocurrency trading store, with no involvement of any Mainland Chinese capital. This is to clarify the situation.
According to the data from the Ministry of Economic Affairs Business Registration, the current head of Asia Pacific Easy Tech Co., Ltd. is indeed Guo Hongze.
VASP Association Response
As BitAsset exchange had completed the statement of compliance with anti-money laundering laws and regulations for cryptocurrency exchanges and joined the “Republic of China Virtual Currency Business Industry Association” (referred to as the VASP Association), the association also responded to the matter:
Regarding the search of VASP Association members today, the VASP Association stated that it will continue to pay attention to the investigation and actions of the judicial authorities on related cases, and maintain close communication with the competent authorities.
The association was established in accordance with the guidance principles issued by the Financial Supervisory Commission. As long as it has completed the statement of compliance with anti-money laundering laws and regulations, the company is eligible to apply for membership. The association includes members based on the anti-money laundering list, and has no other screening or delisting responsibilities.
After completing anti-money laundering compliance, companies must also cooperate with financial inspections. According to the previous report by Financial Supervisory Commission Chairman Guinlong Peng at the Legislative Yuan, in the future, VASP operators will have a clear definition and will transition from reporting system to registration system, and operators involved in illegal activities will also bear criminal responsibility.
The association has always maintained smooth communication with the competent authorities and continues to pay attention to the development of the events.