Major Taiwan exchanges respond to FTX and Alameda risks: ACE, BitoPro, and MAX claim unaffected

The controversy surrounding the FTX exchange may cause significant waves in the cryptocurrency industry, but the extent of its impact remains uncertain. When interviewed, the four major fiat currency exchanges in Taiwan were asked whether they would respond to the risks posed by FTX and Alameda's crisis. As of now, the responding entities have all stated that they are not affected and leave it to readers to assess the situation.

ACE Exchange Response: No Impact

Here is the response from ACE Exchange:

"I am David Pan, founder of ACE Elite Digital Asset Management Group. ACE Exchange is not affected by the FTX incident, and trading and operations are completely normal.

ACE, the first legal and compliant ACE Elite exchange in Taiwan, registered in Taiwan, provides a platform for trading New Taiwan Dollars and cryptocurrencies. ACE has double insurance, with funds held in "100% New Taiwan Dollar deposit trust by KGI Bank" and "CYBAVO cryptocurrency wallet system" protected by Nord Insurance Brokers to safeguard customers' cryptocurrency assets. ACE also commissions a professional accounting firm to audit all user assets, ensuring no misappropriation of customer funds or high-risk operations. We guarantee the safety of all assets within ACE, with 100% reserve proof, which will be disclosed in the coming weeks.

ACE offers the most diverse investment and financial management functions and products in Taiwan, including spot trading, dollar-cost averaging, one-click trading, grid trading, and coin hoarding financial management, the best quantitative tools. We will continue to introduce new functions in the future to meet different investment needs. We use intelligent risk control systems, diverse allocation strategies, rigorous risk diversification, internally developed AI robots to automatically capture market signals, including mainstream market indicators, monitor over 400+ markets in real-time, and quickly grasp market trends."

ACE ensures that the group and industry adhere to the highest legal and compliance principles, with the core mission of protecting customer asset security, and we will weather every bull and bear market together!"

Bito Exchange Response: No Impact

Here is the response from Bito Exchange:

"The Bito Group responds to the FTX incident. The Bito Group was not impacted by the FTX incident due to its high-risk awareness.

Bito Pro assists users in spot match trading, so all operations are not affected by the FTX incident. Bito EX's wallet adopts a decentralized buying strategy to facilitate coin purchases for users, with a small amount of funds reserved and distributed across major exchanges worldwide. When a foreign research institution issued a warning about abnormal conditions on FTX last week, Bito stopped trading on FTX, withdrew funds, and minimized risks.

The Bito Group remains optimistic and enthusiastic about the blockchain and Web3 industry and technology. Even in a bear market, Bito will stand with users and provide features more suitable for bear markets. However, with recent large fluctuations in the cryptocurrency market, users are reminded to invest cautiously."

MAX Exchange: No Impact

MaiCoin Group stated:

"The recent FTX incident has caused global cryptocurrency market volatility and panic. MaiCoin digital asset trading platform and MAX digital asset exchange have always operated with the highest guiding principles of 'proactively complying with laws and regulations, actively protecting users, and prudently controlling risks.' Both platforms have not listed the token FTT, and currently, the group and all platform users have not been directly affected.

MaiCoin and MAX platforms have never listed tokens FTT or other digital assets directly related to FTX. However, FTX.com is one of the institutional entities with which the group conducts business for hedging and liquidity management. The group's exposure balance on FTX.com is approximately USD 260,546.07, which has no significant impact on the group's operations and customer asset security.

The group's fiat and digital assets exceed liabilities, and its own funds and liquidity reserves can continue to support the group's stable operations. The group emphasizes that all users' NTD assets on MaiCoin and MAX platforms are fully delivered to trust accounts supervised by the Financial Supervisory Commission of the Republic of China. Users' digital assets are also insured and subject to the highest level of cybersecurity control. The board of directors of the group believes that upholding the highest standards to gain the trust of users and the market is the group's unwavering mission.

Furthermore, when selecting business partners and counterparties, the group adheres to the principle of pre-assessment to ensure that customers have the most satisfactory experience without compromising risk management and corporate governance principles."

Continued challenges in the macroeconomic environment and sudden events in individual startups will lead the global digital asset industry through a process of survival of the fittest. Since its founding in 2013, the group has actively sought counter-cyclical growth during industry consolidation, continuously innovating to create a more diverse and open financial technology future. On behalf of the board of directors of the group, we once again extend our sincerest thanks to all our users, investors, and employees for their support."

BITGIN Exchange Response: No Impact

Here is the response from BITGIN Exchange BITGIN Exchange:

"BITGIN Exchange is not affected by the FTX incident, and all user assets are very secure.

BITGIN's business model is different from other exchanges, as our assets are continuously liquid, so the FTX incident has not had any impact on BITGIN.

To address platform risks in the cryptocurrency market, BITGIN has always adhered to the principle of 'proactively cooperating and supporting,' looking forward to and supporting Taiwan's government in proposing more complete and stringent regulatory systems for cryptocurrencies to provide a safer environment for investors and protect all investors' asset security.

The application of blockchain is gradually rising, and the essence of blockchain is decentralization, on-chain operations, transparency, and verifiability. BITGIN has always maintained a cautious and optimistic attitude towards blockchain. We believe that decentralized exchanges and applications can fully leverage their advantages in the future, and BITGIN believes that the future will move towards a more decentralized direction. Whether it's GameFI, Defi, or decentralized identity verification, BITGIN can make operations simpler, safer, and more protected for all users through BITGIN."

HOYA Bit Exchange Response: No Impact

HOYA Bit cryptocurrency exchange responded that it was not affected by the FTX incident.

In order to enhance user asset management services, HOYA Bit cryptocurrency exchange has established asset custody and insurance mechanisms for trading in New Taiwan Dollars and cryptocurrencies. For New Taiwan Dollars, HOYA Bit has partnered with KGI Bank for trust services, entrusting KGI Bank to provide New Taiwan Dollar deposit trust services to ensure the independence of user assets in New Taiwan Dollars. For cryptocurrencies, HOYA Bit collaborates with Cybavo and Lockton Insurance, providing each user with insurance coverage from Standard & Poor's AA-rated international insurance company Lockton Insurance to address concerns about safeguarding digital assets.

We believe that the FTX incident provides an opportunity for industry players and investors to learn. Cryptocurrency exchanges should conduct proper risk assessments before launching any token products and should not expand arbitrarily or introduce speculative products. It is essential to have stricter checks for investors who trust the exchange. Even large financial institutions, including traditional banks widely trusted by the public, cannot withstand a run on customer funds. Zoe, founder and CEO, calls for mutual assistance rather than attacks among domestic cryptocurrency industry players facing liquidity issues. Through collective efforts, the cryptocurrency industry can grow and mature. Many domestic cryptocurrency investors suffered heavy losses in the recent FTX incident, emphasizing the importance of establishing correct cryptocurrency investment concepts. Investors must understand the circulation scale, security, and stability of the tokens globally, prioritizing these factors before investing and conducting research to understand the risks."

Binance Raising Inspection Standards

Previously reported on "FTX Incident Insights | 'No use of user assets' is just a statement without evidence. Can your exchange provide PoR reserve proof?" mentioning the concept of PoR reserve proof. Binance founder Zhao Changpeng has already introduced partial asset proof, publicly displaying exchange on-chain assets to enhance transparency.

However, the feasibility of this for small and medium-sized exchanges remains to be verified.