Taiwan-based exchange BitShine was reported to have been acquired in April this year. In an interview with Dynamic Zone, co-founder Chen Peiyun was asked for more details and also noticed that many overseas and domestic teams in the Taiwanese crypto industry are seeking acquisition opportunities.
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(Background supplement: ACE exchange Pan Yizhang is charged with fraud, money laundering, and organized crime and has been formally indicted by the Prosecutor’s Office, seeking severe punishment.)
Table of Contents:
Who is the acquirer of BitShine? Overseas or domestic team?
The next step for the original BitShine team: Moving towards the blockchain
Is Taiwan’s exchange experiencing a wave of blood transfusion?
It was reported that BitShine Cointhink Technology Co., Ltd. was acquired on January 3rd of this year, and the news spread in the Taiwanese crypto industry, attracting a lot of attention from the community. It is said that the original Cointhink team and the new management team completed the handover procedures in April this year, and the current exchange has suspended external operations and is being reorganized by the new management team.
Dynamic Zone had a special interview with Claire, co-founder of Cointhink Technology, to provide more information on the acquisition and comment on the recent changes in the Taiwanese Virtual Asset Service Providers (VASPs).
As the driving force behind BitShine, Chen Peiyun admitted that she was relieved after successfully selling the company to an external team, stating, “I can finally relax a bit.” It is understood that the acquisition of BitShine involved negotiations with an external team for a year, starting in 2023 when the preparations and negotiations began.
As for the new management team, who are they? Are they from overseas or domestic? Chen Peiyun mentioned that it is inconvenient to disclose this information due to confidentiality clauses in the transaction agreement. However, according to sources from Dynamic Zone, the new owner who will take over BitShine is likely a domestic team and is quite familiar with crypto 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 establishment of the VASP Association officially approved in domestic exchanges in Taiwan, the blood transfusion of BitShine’s management team will be observed to see if it can disrupt the user ecosystem of domestic exchanges.
The next goal for Chen Peiyun, who remains part of the original team, after the completion of BitShine’s business is to develop DeFi projects on the blockchain. The initial focus will be on deploying projects on several prominent public chains with a large user base. However, the specific project details and direction are not suitable for complete disclosure at the moment, and new financing parties have not been contacted yet.
Is Taiwan’s exchange experiencing a wave of blood transfusion?
Dynamic Zone has received multiple sources that indicate many Taiwanese crypto exchanges are currently in the legislative stage in Taiwan. Some exchanges that have completed anti-money laundering registration and joined associations feel that their existing business models are being challenged. Coupled with the significant increase in compliance costs, more than one exchange is seeking new buyers to take over.
(Image source: FSC’s latest version (March 2024) of the list of 25 entities included in the anti-money laundering prevention list)
In addition, with the gradual formation of cryptocurrency legislation in Taiwan, overseas businesses also have the idea of “quickly landing” by acquiring domestic exchanges. Over the past six months, news of seeking acquisition opportunities in Taiwan has frequently emerged. The CEO of a major domestic exchange expressed affirmation towards this phenomenon, saying, “The era of compliance and intense competition has arrived, and it is gratifying to see that the exchanges that remain are serious about their work. The entire environment will be more user-friendly.”
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(ACE exchange Pan Yizhang is charged with fraud, money laundering, and organized crime and has been formally indicted by the Prosecutor’s Office, seeking severe punishment)