Taiwan VASP Association Preparatory Group: ACE Current Leader Temporarily Steps Back from Preparatory Work, Members will Focus on Industry Standards such as IEO

The Taiwan VASP Association Preparatory Team has encountered continuous turmoil during the association's preparatory period. After the cryptocurrency exchange BITGIN withdrew from the association due to its involvement in the "88 Guesthouse" money laundering case, it was revealed that the former head of ACE exchange, Pan Yizhang, was implicated in a fraud case related to an Initial Exchange Offering (IEO) in 2019. The preparatory team issued a response on 1/5 in response to these events.

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ACE: No Current Employees Involved, Former Executive Not Part of Preparatory Group Affairs

The VASP Association Preparatory Group held an emergency meeting as 1/4 of its members were suspected of fraud in the listing of coins traded on exchanges. According to ACE's explanation to the Preparatory Group, its current employees are assisting the authorities as witnesses in the investigation. The individual responsible for the case has been changed to Wang Chenhuan, the director of Jianye Legal Affairs Firm, who holds 100% of the shares and is currently registered by the regulatory authority as of December 14, 2023.

The Preparatory Group also stated that since September last year, the members of the Preparatory Group have been led by the current executive Wang Chenhuan and not those involved in the case.

ACE's Current Executive Willing to Temporarily Step Back from Preparatory Work

Although the individual involved is a former executive, ACE's current executive Wang Chenhuan expressed apologies for the impact on the Preparatory Group and voluntarily decided to temporarily withdraw from the preparatory work to avoid controversy.

Preparatory Group: Awaiting Investigation Results

The Preparatory Group stated: "Based on the principles of non-disclosure of investigations and presumption of innocence, the Preparatory Group fully respects the legal procedures of the judicial authorities and the legal rights of the parties involved in the investigation, as well as the explanations of the Preparatory Group members involved in the investigation, and awaits the final determination by the district prosecutor's office or court."

Preparatory Group: EmphasizingHighlighting the Importance of Industry Standards, No Longer Allowing Operators to Fumble in the Dark

The Preparatory Group emphasized that the Financial Supervisory Commission's guiding principle Article 4 requires operators to establish a proper review mechanism and retain written records when listing virtual assets. Besides the white paper, operators should also review compliance with regulations, the liquidity and manipulability of virtual assets, the sustainability of issuers of virtual assets, the content of advertisements for virtual assets, and whether there are any improper, false statements, or situations that may deceive others such as fraud, concealment, or other misleading information.

This incident highlights the importance of pre-sale token offerings, Initial Exchange Offerings (IEOs), and the review mechanism for listing, as well as the importance of controlling business solicitations and advertising content.

The Preparatory Group stated that discussions on self-regulatory standards will be initiated promptly after the establishment of the association to establish industry standards, allowing operators to explore without being in the dark and to prevent similar disputes under guidance, and to no longer occur.