Taiwanese ACE Exchange President Faces Detention in Fraud Probe: Here’s What You Need to Know

Taiwanese prosecutors have broadened their investigation of ACE Exchange and have requested for the detention of Chenhuan Wang.

Taiwan’s ACE Exchange finds itself in trouble as prosecutors widen their investigation into fraud allegations.

Last updated: January 24, 2024 05:19 EST | 2 min read

Taiwanese prosecutors have recently expanded their investigation into ACE Exchange, a prominent cryptocurrency exchange platform. Chenhuan Wang, the president of ACE Exchange, is now facing detention as prosecutors accuse him of money laundering and fraud. This investigation is related to alleged fraudulent activities orchestrated by David Pan, the company’s founder, who was detained earlier this month.

Digging Deeper Into the Investigation

The Taipei District Prosecutors Office revealed that Wang, who is also a partner at the Chien Yeh law offices, was questioned alongside four other suspects after police conducted raids in various locations in Northern Taiwan. Following the interrogation, prosecutors filed a request with the court to detain Wang and restrict his visitation rights, along with the other suspects involved in the case.

Pan and his co-conspirator, Lin, were accused of collaborating for three years to deceive investors through false advertisements on social media. They used these advertisements to trick investors into purchasing worthless cryptocurrencies, including MOCT. Now, Wang has also been implicated in the case, and the court will determine whether he will be detained.

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ACE Exchange’s Response: Pan’s Limited Involvement and Assurance to Users

ACE Exchange responded to Pan’s arrest by stating that Pan had not been involved in daily operations since 2022. Wang took over as the president of the exchange in September 2023. Wang claimed that he had made efforts to delist controversial coins after assuming the role, and ACE assured users that it was cooperating with the investigation as a witness.

In a recent statement, ACE Exchange emphasized that its trading and operational conditions remain normal. The company affirmed its commitment to the security of user assets and the smooth functioning of cryptocurrency and New Taiwan Dollar deposit and withdrawal services. ACE Exchange, established in 2018, is one of the prominent cryptocurrency exchanges in Taiwan, alongside BitoGroup and MaiCoin.

The exchange further emphasized that its management team adheres to the principles of law and will not tolerate any misconduct.

Looking Ahead: Taiwan’s Crypto Regulation Plans

Taiwan is preparing to impose restrictions on offshore cryptocurrency exchanges operating within its jurisdiction unless they obtain the required registration. The country’s Financial Supervisory Commission (FSC) has drafted ten guiding principles for virtual asset services providers (VASPs) to establish self-regulatory rules. These principles, expected to be officially released soon, will focus on various aspects such as information disclosure, virtual asset listing and delisting review standards, and the separation and custody of companies’ and customers’ assets.

The FSC aims to strictly prohibit illegal business solicitation by foreign crypto firms operating in Taiwan. It will mandate foreign VASPs to register in accordance with company law and declare their compliance with anti-money laundering regulations to the FSC. Failure to comply will result in these firms being barred from soliciting business within Taiwan or from domestic residents.

Q&A: What Readers Want to Know

Q: What is the current status of ACE Exchange’s operations? A: ACE Exchange has assured users that its trading and operational conditions remain unaffected. The company remains committed to the security of user assets and the smooth functioning of deposit and withdrawal services for cryptocurrencies and New Taiwan Dollar.

Q: Are there any other major cryptocurrency exchanges in Taiwan? A: Yes, apart from ACE Exchange, BitoGroup and MaiCoin are also prominent cryptocurrency exchanges in Taiwan.

Q: How will Taiwan regulate offshore cryptocurrency exchanges? A: Taiwan’s Financial Supervisory Commission (FSC) plans to impose restrictions on offshore cryptocurrency exchanges operating within its jurisdiction. These exchanges will need to obtain the required registration or risk being barred from soliciting business within Taiwan or from domestic residents.

The Future of Crypto Regulation in Taiwan

As Taiwan moves forward with its plans to regulate the cryptocurrency industry, it aims to strengthen the security and integrity of the market. By implementing self-regulatory rules for virtual asset services providers, the country aims to protect investors and maintain a transparent ecosystem. This regulatory framework will provide more confidence and trust to participants, ultimately benefiting the overall growth and development of the cryptocurrency industry in Taiwan.

References:

1. Un Implicates Crypto in Booming Illicit Economies in Southeast Asia
2. Gary Gensler’s Statement on Bitcoin ETF Approvals
3. Taiwan set to impose restrictions on offshore cryptocurrency exchanges
4. Follow Us on Google News

Image Source: Taiwan’s ACE Exchange in Hot Water as Prosecutors Expand Fraud Probe

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