Taiwanese crypto exchange and VASP member Bitgin under investigation for money laundering

Taiwan cryptocurrency trade Bitgin is beneath investigation by the nation’s police power for cash laundering. Based on native information reviews early this week, Yuting Zhang, the agency’s COO, was arrested by Taiwanese police for his alleged function within the “Eighty-Eight Guild Corridor” cash laundering incident.

 Beforehand Zhemin Guo and Chengwen Tu, two native businessmen, had been accused by police of working a multi-billion-dollar cash laundering scheme through the use of their overseas trade places of work and crypto trade accounts to launder proceeds of crime obtained through wire fraud from abroad. Chengwen Tu can also be accused of defrauding the nation’s tax authorities by claiming 300 million New Taiwan Greenback ($9.28 million) in fradulent export tax refunds via abroad sale of online game credit. 

Taiwan at present has no official licensing regime for cryptocurrency exchanges. In September, Bitgin, together with its business friends, created the Digital Asset Service Supplier Preparatory Workplace (VASP) for the needs of self-regulation and lobbying of political officers. Concerning the incident, Yuling Tsai, common counsel of the Taiwan VASP Affiliation, stated:

“This time, a member of the preparatory group had been concerned within the investigation case. The preparatory group instantly held a gathering and issued a public response. The members concerned within the case additionally took the initiative to droop participation within the work of the preparatory group.”

In a press release on Monday, the trade stated that its operations “are regular and person rights won’t be affected.” As informed by Bitgin, its COO Yutian Zhang was concerned with corporations of the Eighty-Eight Guild Corridor cash laundering incident from late 2021 to March 2022. Nevertheless, Bitgin stated that Zhang ceased all communications with the counterparties after the invention of cash laundering allegations. 

“At current, Bitgin is absolutely cooperating with the investigating unit and actively offering all vital help to make sure the graceful conduct of the investigation and hopes that the information may be clarified as quickly as attainable.”

Associated: Monetary Supervisory Fee of Taiwan awards first securitized token license