Taiwanese Exchange BitAsset Announces Termination of Operations
On the 10th, BitAsset (Asia-Pacific Ean Technology), a previously registered exchange with the Financial Supervisory Commission (FSC), announced that it has ceased operations, raising questions about why domestic exchanges are shutting down one after another.
(Background: CoinWorld’s Yin Tianxia announces “termination of operations” – what is the true reason? Insiders reveal details.)
(Additional context: Did the FSC ask Line to delete “all cryptocurrency groups”? Regulatory authorities: It is a rumor.)
Following CoinWorld (Yin Tianxia), the Taiwanese exchange BitAsset (Asia-Pacific Ean Technology) issued an official statement on the 10th, stating that it will completely terminate its cryptocurrency trading business starting from May. The company also expressed gratitude to its users on its social media platform:
Thank you all for your support and trust throughout this journey.
Finally, we sincerely thank all the users and partners who have supported us.
It is your trust and companionship that have allowed us to persist on this thorny path until now.
Although our trading services have come to an end, our philosophy and technology will continue to shine in another form.
— The BitAsset Team, Asia-Pacific Ean Technology Co., Ltd.
Why Are Exchanges Closing One After Another?
Many in the community are surprised by the closure of exchanges that have physical storefronts. An anonymous source pointed out that following the fraud and money laundering case involving a cryptocurrency exchange in April, which led to its termination, many other operators benefitted from increased business. However, this also brought in a number of “troublesome customers” with cash of unclear origin, causing significant issues for exchanges operating physical locations.
Additionally, the FSC began requiring domestic exchanges to use “traceable sources of funds” when allowing customers to trade cryptocurrencies. This means that cash transactions from unknown sources will no longer be permitted in exchanges for trading tokens.
The source noted that in the future, operators primarily conducting cash transactions at physical storefronts will see a decrease in customers and a substantial drop in profits. Faced with higher regulatory costs ahead, many operators may choose to exit the market, and the wave of closures may just be beginning!
Termination of Operations May Not Halt Financial Inspections
According to a report by Dongqu, the FSC confirmed that if domestic VASP operators who previously applied for registration have passed financial inspections and then declare termination of operations, they would exit the market. However, if they have not completed financial inspections before exiting, it will depend on the review by the FSC’s inspection bureau. There may still be ongoing financial inspections after the operators announce their closure, requiring them to thoroughly check and retain records of previous transactions, anti-money laundering measures, cybersecurity, KYC, etc.
