Taiwan's Legislative Yuan passed the Virtual Asset Service Act in its third reading on June 30, 2025, sending it to President Lai Ching-te for promulgation. The law shifts crypto oversight from a simple anti-money laundering registration system to full financial supervision by the Financial Supervisory Commission (FSC). All virtual asset service providers must obtain a license from the FSC before operating. Stablecoin issuers require both central bank consent and FSC approval, and must hold full reserve assets in trust. Operating without a license carries up to seven years in prison and fines of up to NT$100 million ($3.1 million). Fraud or market manipulation can result in three to ten years in prison and fines up to NT$200 million ($6.3 million). The law defines seven categories of service providers and sets standards on personnel fitness, internal controls, cybersecurity, and asset segregation. Firms already registered for AML compliance have a transition period to apply for a license within 12 months and obtain full approval within 21 months. The FSC will draft secondary rules to implement the regime, placing Taiwan alongside jurisdictions like Japan, Singapore, Hong Kong, and the EU in regulating crypto as licensed finance.

Key facts

• Taiwan's Legislative Yuan passed the Virtual Asset Service Act on June 30, 2025.
• All crypto service providers must be licensed by the FSC; stablecoin issuers need central bank consent.
• Unlicensed operations face up to 7 years in prison and fines up to NT$100 million ($3.1 million).
• Fraud or market manipulation carries 3-10 years in prison and fines up to NT$200 million ($6.3 million).
• Registered AML firms have 12 months to apply for a license and 21 months to obtain full approval.