- Taiwan approved its first comprehensive crypto law.
- Exchanges and stablecoin issuers must obtain licenses.
- The framework introduces stricter compliance and consumer protection rules.
- The law brings long-awaited regulatory clarity to the industry.
Taiwan has officially passed the Virtual Asset Service Act, creating the country's first comprehensive legal framework for digital assets and ending years of regulatory uncertainty for crypto businesses.
Under the new law, crypto exchanges, stablecoin issuers, and other virtual asset service providers must obtain approval from Taiwan's Financial Supervisory Commission (FSC) before operating. The framework also introduces stricter requirements for cybersecurity, customer asset segregation, internal controls, and reserve backing for stablecoins.
Existing crypto firms will be given a transition period to comply with the new licensing requirements, while companies operating without approval could face severe penalties, including prison sentences and substantial fines.
Industry leaders say the legislation provides the legal clarity many businesses have been waiting for. The new rules are also expected to encourage greater institutional participation, as traditional financial institutions will now be able to compete directly with existing crypto firms under the same regulatory framework.
The Taiwan VASP Association will work alongside regulators to help develop the remaining implementation rules covering licensing, operations, compliance, and governance.
The legislation positions Taiwan alongside other major jurisdictions that are building comprehensive crypto regulations, reflecting the global shift toward clearer oversight as digital assets continue moving further into mainstream finance.
