Unauthorized Chinese investment sets up virtual currency exchange platform in Taiwan without permission
The Taipei District Prosecutors Office recently ordered the Taipei City Investigation Bureau to conduct a search operation and investigate Asia Pacific E-Link Technology Co., Ltd. for allegedly operating a virtual currency exchange platform in Taiwan without permission.
This case involves Xinpai Blockchain, a subsidiary of China’s Xin Pai Media Group, which established Asia Pacific E-Link Technology in Taiwan in 2018 and operated the BitAsset virtual currency exchange platform.
According to United News Network, Hu Zhilong, the head of Asia Pacific E-Link Technology, is suspected of concealing the company’s Chinese investment background and recruiting people in Taiwan to use the BitAsset platform for virtual currency transactions without the approval of the Ministry of Economic Affairs’ Investment Commission. The Taipei District Prosecutors Office commanded the investigation bureau to conduct a search operation yesterday and summoned Hu Zhilong and other relevant personnel. After the interrogation, Hu Zhilong was released on bail of NT$200,000, and three former executives were also asked to return.
Hu Zhilong originally held a key position in Xinpai Blockchain and was responsible for establishing Asia Pacific E-Link Technology when Xinpai Blockchain decided to promote the BitAsset virtual currency exchange in Taiwan. However, the company began conducting virtual currency transactions and other business activities in Taiwan without obtaining approval from the Ministry of Economic Affairs’ Investment Commission.
Is BitAsset a member of the VASP Association? What will happen next?
Currently, BitAsset is one of the members of the newly established Virtual Asset Service Providers (VASP) Association in Taiwan and is also listed among the 25 companies that have completed the Anti-Money Laundering Compliance Statement announced by the Financial Supervisory Commission.
Due to the Financial Supervisory Commission’s requirement, members of the virtual asset association must complete the anti-money laundering statement. Therefore, if BitAsset withdraws its anti-money laundering statement in the future, it will also lose its membership status in the association.
The Virtual Asset Service Providers Association of Taiwan was officially established on June 13, 2024, with a total of 24 founding members who have completed the Anti-Money Laundering Compliance Statement of the Financial Supervisory Commission. The list is as follows:
Member Classification Level
Company Name
Operating Brand
Class A, Level A
Modern Fortune Technology Co., Ltd.
MaiCoin and MAX
Ace Digital Innovations Co., Ltd.
ACE
Rybit Co., Ltd.
Rybit
Linkto Co., Ltd.
XREX
Bitgeneration Technology Co., Ltd.
GoldBit
BitPro Technology Co., Ltd.
BitoPro
Hoya Digital Technology Co., Ltd.
HOYA BIT
Sanchuan Token Co., Ltd.
BitstreetX
WoHeng Technology Co., Ltd.
WoHeng
Pioneer Digital Technology Co., Ltd.
ZONE Wallet
Class A, Level B
Crosslink Technology Co., Ltd.
Chainss
Cryptonics Inc.
WOO Network
Biotech Technology Co., Ltd.
Bityacht
Class B, Level A
Hongzhu Digital Co., Ltd.
HzBit
Yintianxia International Management Consulting Co., Ltd.
CoinWorld
Class B, Level B
Taiwan Zhi Jing Co., Ltd.
Taiwan Zhi Jing
Sungfast Co., Ltd.
ZomFast
Bitsense Technology Co., Ltd.
BitShine
Asia Pacific E-Link Technology Co., Ltd.
BitAsset
Power International Co., Ltd.
Trains
Xiahe Co., Ltd.
COINSHA
Yang Family Co., Ltd.
Buycoin
Yilufa Co., Ltd.
Yilufa
Asia Pacific E-Link Technology is classified as Class B, Level B, indicating that it is engaged in any two of the following three businesses:
1. Exchange between virtual currency and New Taiwan Dollar, foreign currency issued by mainland China, Hong Kong, or Macau.
2. Exchange between virtual currencies.
3. Virtual currency transfers.
However, it does not meet the following two conditions:
1. The company’s paid-in capital is NT$15 million or more, and it has more than 15 employees.
2. It has more than 100 employees.
Regardless, the explanation of the membership status of the virtual asset service providers association indicates that BitAsset has a certain degree of legitimacy and influence in Taiwan. However, this investigation has revealed the issue of its Chinese investment background and unauthorized operation.
In determining its legality, it is believed that one party must make concessions due to possible differences in regulations.
