Taiwan’s sweeping crypto law raises the bar with licensing, reserve mandates, and tough penalties
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Taiwan has taken a major step forward in overseeing its digital asset sector by enacting comprehensive new regulations for cryptocurrency operations.
Key facts
- Meanwhile, market fraud or price manipulation offenses carry even stiffer sanctions: three to ten years behind bars and fines ranging from NT$10 million to NT$200 million
- Platforms that are already registered for anti-money laundering compliance will receive a 12-month grace period to submit license applications and up to 21 months in total to obtain full FSC approval
- First, they must win approval from both the central bank and the FSC, while maintaining 100% asset reserves at all times
- On Tuesday, lawmakers in the Legislative Yuan approved the Virtual Asset Service Act during its third reading, forwarding it to President Lai Ching-te for formal signing, which is anticipated
Summary
Taiwan has passed a sweeping new law to regulate its crypto sector, requiring all virtual asset service providers to obtain licenses and comply with stricter operational, governance, and custody standards. The legislation also imposes tough penalties for violations and introduces tighter rules for stablecoins, signaling a shift from basic AML oversight to full-scale regulatory supervision. On Tuesday, lawmakers in the Legislative Yuan approved the Virtual Asset Service Act during its third reading, forwarding it to President Lai Ching-te for formal signing, which is anticipated within the next ten days. Once signed, the Executive Yuan will set the official start date for the rules.