Taiwan Passes First Crypto Regulation Law, Establishes VASP Licensing Framework

According to The Block, Taiwan's Legislative Yuan passed the Virtual Asset Service Act on July 1, establishing a comprehensive regulatory framework for virtual asset service providers (VASPs) and stablecoin issuers. The law requires crypto platforms to obtain Financial Supervisory Commission (FSC) approval before operation and comply with stricter cybersecurity, customer asset segregation, and internal control standards. Platforms that completed anti-money laundering registration have 12 months to apply for a license and 21 months to obtain FSC approval.

Stablecoin issuance requires approval from both the central bank and FSC, with sufficient reserves mandated. Unauthorized VASP or stablecoin operations carry penalties of up to 7 years imprisonment and NT$100 million in fines; market fraud or manipulation can result in 3 to 10 years imprisonment and fines of NT$10–200 million.