Taiwan’s fintech startup CherryPay was once celebrated as the pride of Taiwan and was also invited to deliver a speech at the country's top financial regulator, the Financial Supervisory Commission (FSC). However, CherryPay was considered to involve in money laundering and being searched by the police. Wellington Koo, the chairman of FSC, told today on December 17th that CherryPay is currently applied to the Regulatory Sandbox. But, it depends on the organ of prosecution and investigation to see whether it can enter the sandbox. FSC will make a decision before the end of the month according as planned.
Tom Tang, the founder and CEO of CherryPay, is very active in the industry. Last year, he won the top 10 of the world's largest fintech startup accelerator SBC and once celebrated as the pride of Taiwan. He was also invited to deliver a speech at FSC in June last year. However, on August 6th this year, CherryPay was searched by the prosecution, and it was considered to involve in money laundering and seized NTD$10mn.
Yung-Chang Chiang, members of the Legislative Yuan, questioned in the inquiry of the Finance Committee at Legislative Yuan that the CherryPay has changed from the star of tomorrow to the prisoner of the order. The investigation of the Fraud accounts and underground remittances. Does CherryPay has any touch?
Koo responded that it still need the prosecution to confirmed whether CherryPay is involved in underground remittances. However, since CherryPay has applied to the Regulatory Sandbox, it is currently under consideration by the FSC. Koo also admitted that CherryPay’s operation seems to be like underground remittances. In the process of redemption between the two places, the application and the local collection have no restrictions. It takes a long time to do money laundering prevention, KYC, and capital security. If not doing well, it may result in a loophole in money laundering prevention.
Koo said that currently CherryPay is under investigation but has not been prosecuted. Whether it involves underground remittance or not should be confirmed by the prosecution. There is no conclusion yet.