Taiwan Cryptocurrency Exchange Under Investigation for Money Laundering
The Taiwan cryptocurrency exchange Bitgin is currently under investigation by the country’s police force for alleged involvement in money laundering. The company’s COO, Yuting Zhang, was arrested by Taiwanese police in connection to the “Eighty-Eight Guild Hall” money laundering incident. This comes after local businessmen were accused of operating a multi-billion-dollar money laundering scheme using their foreign exchange offices and crypto exchange accounts.
Chengwen Tu, one of the businessmen involved, is also accused of defrauding the country’s tax authorities. Notably, Taiwan does not have an official licensing regime for cryptocurrency exchanges. In response to the incident, the Virtual Asset Service Provider Preparatory Office (VASP) created by Bitgin and its industry peers for self-regulation and lobbying has taken action.
Bitgin’s Response
In a statement released on Monday, Bitgin assured users that its operations are normal and that user rights will not be affected. The company stated that its COO was involved with firms related to the money laundering incident but ceased all communications with them after the allegations surfaced. Bitgin is fully cooperating with the investigating unit and providing necessary assistance to ensure a smooth investigation process.
Hot Take: Implications of Money Laundering Investigation
The investigation into Bitgin’s involvement in money laundering raises concerns about the lack of regulatory oversight in Taiwan’s cryptocurrency exchange sector. It also highlights the need for greater scrutiny and accountability within the industry to prevent illicit activities such as money laundering from occurring.
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