Taiwan has passed one of its most comprehensive cryptocurrency regulations to date, including 100% reserve requirements for stablecoin issuers, obligatory license for cryptocurrency companies, and jail sentences of up to seven years for unregistered activities.
The new Virtual Asset Service Act was adopted by MPs on Tuesday and is expected to be signed by President Lai Ching-te within the next ten days before going into effect on a date chosen by the Executive Yuan.
The law strives to promote investor safety while fostering the long-term growth of the firm and considerably tightens regulation of the nation’s digital asset industry.
To operate legally in Taiwan, virtual asset service providers, such as cryptocurrency exchanges and trading platforms, must get a license from the Financial Supervisory Commission (FSC). This is a big departure from the prior approach, which focused primarily on anti-money laundering registration.
The law also establishes more stringent guidelines for cybersecurity, internal risk management, corporate governance, and client asset protection. Cryptocurrency companies must keep customer payments separate from business assets to reduce the risk of losses in the event of financial troubles.
Businesses that are already registered under Taiwan’s anti-money laundering regulations will have up to 21 months to obtain complete regulatory clearance and 12 months to apply for licenses.
Regulations governing stablecoin issuers are more stringent. The FSC and Taiwan’s central bank must first approve any company looking to create stablecoins.
JUST IN: 🇹🇼 Taiwan’s legislature passes law establishing a regulatory framework for the Bitcoin and crypto industry.
“We’re officially entering a new era of digital finance.” 🚀
— Bitcoin Magazine (@BitcoinMagazine) July 1, 2026
Source: fsc.gov.tw
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