Taiwan’s lawmakers passed the country’s first crypto regulatory framework. It requires licensing for all virtual asset service providers (VASPs) and sets rules for stablecoins.
The Financial Supervisory Commission says VASPs — exchanges, trading platforms, custodians, lenders — must get approval to operate. Seven categories are defined. All must follow rules on internal controls, audits, cybersecurity, asset segregation, and financial reporting.
Stablecoin issuers need approval from both the central bank and FSC. They must maintain sufficient reserves with a trustee and undergo regular audits.
Penalties are stiff. Crypto fraud and price manipulation carry 3-10 years in prison and fines up to $6.3 million. Operating without a license: up to 7 years and $3.1 million.
The bill’s implementation date is still TBD. It takes effect once the executive branch publishes it. Existing VASPs with AML registration have 12 months to get licensed after that.
Taiwan joins Japan, Singapore, and Hong Kong in giving crypto a formal legal framework. The goal is integration with global markets.
