Recruiting students for teaching Cryptocurrency Trading! The legality of 'encryption胡適' is in question.

On December 17th, the three major associations of the securities and futures industry in Taiwan issued warnings. 'encryption Hu Shi', who often livestreams on Facebook, openly prices classes, and provides individual Token analysis opinions to students, is a 'virtual currency platform operator who has not completed the anti-money laundering compliance statement'. Although 'encryption Hu Shi' later emphasized that 'we are a legal tax-paying cram school' and 'not a currency dealer', the key question is: Is it legal for a Cryptocurrency investment expert to 'teach Cryptocurrency Speculation' and collect tuition fees?

The Financial Supervisory Commission supervises the joint construction of the 'Securities and Futures Association', 'Investment Trust and Consulting Association', and 'Securities Dealers Association'. The 'Non-FSC Approved Securities and Futures Operators and Commodity Warning Zone' announced that:

After investigation, 'Yangji Co., Ltd. (encryption Hu Shi)' is not registered in accordance with the 'Regulations on Registration of Businesses or Personnel Providing Virtual Currency Asset Services for Anti-Money Laundering', and has not completed the declaration of anti-money laundering regulations to the Financial Supervisory Commission. Therefore, it is not allowed to engage in business activities such as operating virtual currency platform business solicitation.

The Financial Supervisory Commission recommends that the public refuse virtual currency trading and trading services provided by "洋稽有限公司 (encryption 胡適)" and avoid remitting funds to accounts provided by the company.

According to a previous interview with 'encryption胡適', the founder of '獨角傳媒', Hu Shi, was a supplementary tutor. After starting to study Cryptocurrency investment, he started to make stable profits in 2020. Later, he collaborated with one of his students, '阿伯', to open the 'first tutoring class in the cryptocurrency circle'. In addition to offering general 'spot classes', 'grid classes', and 'small coin groups', they also provide Cryptocurrency investment advice through one of the founders, '阿伯', who offers 'one-on-one tutoring classes'.

In response to the announcement made by the three major associations, 'encryption Hu Shi' today (18th) responded in a Facebook post, stating that the answer received after calling the Financial Supervisory Commission was:

The trade association is not a government organization, as long as someone reports to the association, it may be announced by the association, but it actually has no legal effect.

At the end of "encryption Hu Shi", he emphasized that "we are a legal tax-paying supplementary education provider", "not a virtual currency trading platform or a currency dealer", and believed that he was maliciously reported and slandered.

However, even though 'encryption 胡適' claims not to be a virtual currency platform operator, the question of whether it is involved in illegal activities remains doubtful.

According to relevant precedents, if it involves 'charging tuition fees for private investment courses', it may have violated relevant laws and regulations. For example, in the past, there have been 'unlicensed financial courses' that provided investment advice for a fee, and were found by the court to have violated the 'Securities and Investment Trust and Consulting Act'.

(See the report in the Liberty Times: Attention! Private stock investment courses may lead to criminal liability, one person sentenced to 4 months in prison, and the report in the Wealth Media: Unlicensed financial guru conducts 'day trading' course, confiscates 4 million in tuition fees and income in the first trial, sentenced to 5 months)

In addition, under the legal framework in Taiwan, if a specific Cryptocurrency constitutes a 'valuable security' as defined in Article 6 of the Securities Trading Act, the related activities must comply with the regulations of the Securities Trading Act. The 'text' field is empty. According to previous precedents, if providing individual stock or other valuable securities value analysis opinions and recommendation suggestions without the permission of the regulatory authority, and privately directly or indirectly charging fees to the appointor or third parties, it constitutes 'illegal operation of securities investment advisory business'.

According to further investigation by 'Blockchain Magazine', the business registration data of 'Ocean Quay Limited' does not include the business item 'H304011 Securities Investment Advisory', indicating that the company does not have the legal qualifications to operate such business.

Cryptocurrency Speculation! Whether "Encryption Hu Shi" stepped on the legal red line is doubtful" This article was first published in "Blockers".