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

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Taiwanese prosecutors have expanded their investigation into ACE Exchange, requesting the detention of Chenhuan Wang, the president of the platform.

The prosecutors have accused Wang of money laundering and fraud in connection with the alleged fraudulent activities orchestrated by David Pan, the company’s founder, who was detained earlier this month.

The Taipei District Prosecutors Office revealed that Wang, also a partner at the Chien Yeh law offices, was summoned for questioning along with four other suspects after the police conducted raids at various locations in Northern Taiwan.

Following the interrogation, the prosecutors filed a request with the court to detain Wang and restrict his visitation rights, along with the four other suspects.

Pan and a co-conspirator named Lin were accused of collaborating for three years, using false advertisements on social media to deceive investors into purchasing worthless cryptocurrencies, including MOCT.

The prosecutors have now implicated Wang in the case, and a court is set to determine whether he will be detained.

Pan Was Not Involved in ACE Since 2022

ACE Exchange responded to Pan’s arrest earlier this month by stating that Pan was not involved in daily operations since 2022, with Wang taking over as president in September 2023.

Wang claimed that he had made efforts to delist controversial coins after assuming the role, and ACE assured that it was cooperating with the investigation as a witness.

In a recent statement, ACE Exchange asserted that its trading and operational conditions remain normal, emphasizing the security of user assets and the smooth functioning of cryptocurrency and New Taiwan Dollar deposit and withdrawal services.

“We assure the security of user assets, and all services for deposit and withdrawal of cryptocurrencies and New Taiwan Dollar are functioning smoothly,” the company added.”

ACE Exchange, established in 2018, is one of the prominent cryptocurrency exchanges in Taiwan, alongside BitoGroup and MaiCoin.

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

Taiwan to Push for Crypto Regulations

Taiwan is set to impose restrictions on offshore cryptocurrency exchanges operating within its jurisdiction unless they gain the required registration.

In September last year, the country’s Financial Supervisory Commission (FSC) drafted ten guiding principles for virtual asset services providers (VASPs) to establish self-regulatory rules.

Taiwan's Crackdown: Offshore Crypto Exchanges Must Comply or Exit #AltcoinNews#Taiwan#Regulation#CryptoRegulationhttps://t.co/RTm83OaVyw

— DeFiBloke (@DeFiBloke) September 8, 2023

The guiding principles, expected to be officially released by the end of this month, will focus on various aspects.

More specifically, the guidelines are expected to strengthen information disclosure, establish review standards for virtual asset listing and delisting, and ensure the separation and custody of companies’ and customers’ assets.

The FSC plans to strictly prohibit illegal business solicitation by foreign crypto firms.

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 do so will result in these firms being barred from soliciting business within Taiwan or from domestic residents.

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