HzBit Hong Zhu Digital announces "Immediate Closure of Business"! Only 8 VASP operators remain in Taiwan

Hong Zhu Digital (HzBit) announced that it will cease operations at the end of this month. The Financial Supervisory Commission (FSC) only announced the first wave of VASP anti-money laundering registration lists last year, and now, within just a few months, the list has shrunk from 9 to 8.

(Background: Bank × Police Department × VASP integration for the first time: Yuanyuan Bankee launches cross-domain anti-fraud network)

(Additional background: HOYA BIT shocks with new regulations: users can only withdraw funds to compliant VASPs and the top three CMC exchanges in Taiwan)

As Taiwan’s virtual asset regulatory environment accelerates tightening, the first batch of registered anti-money laundering VASP operators are gradually exiting. On September 22 of last year, HzBit, listed on the VASP (Virtual Asset Service Provider) AML registration list, announced it would officially cease operations.

Regulatory Changes and Operational Strategy Adjustments

HzBit publicly announced that, in response to recent government regulatory policy changes and overall strategic adjustments, after careful evaluation by management, it has decided to cease operations starting today. The company stated that all transactions and service processing will be handled until 5:00 PM today (30th), after which no related services will be provided.

Hong Zhu Digital’s current authorized business by the FSC is “virtual asset exchange,” with paid-in capital of NT$15 million. Industry sources indicate that early members of the VASP association, including OTC store operators and Bitcoin ATM providers, found it very difficult to sustain after the FSC banned cash transactions. Now, the last remaining operator, HzBit, has also ended its business, effectively dissolving the B-class members of the association.

VASP Reduction, Entering Oligopoly Competition?

After HzBit officially ceases operations, the list of FSC-approved VASP registration holders decreases from 9 to 8. The remaining operators include Heya Digital, TuoHuang Digital, Zhongliang Technology, Modern Wealth, Fusheng Digital, Cross-Chain Technology, BitToTech, and LianKe.

The reduction in the list does not necessarily indicate a weakening of Taiwan’s crypto industry. However, since the “Virtual Asset Service Law” has not yet passed its third reading, existing regulatory rules have indeed caused complaints among Taiwanese crypto operators that “it’s hard to make money.” Whether this will lead to an oligopoly in the future remains to be seen.