- Taiwan approved a new crypto law covering VASPs, stablecoins, and market conduct.
- Stablecoin issuers must secure approval, maintain reserves, and complete regular audits.
- Existing VASPs must obtain FSC licenses within the timelines set under the new law.
Taiwan has approved new legislation that creates a broader legal environment for regulating the country’s virtual asset industry. On June 30, 2026, the Legislative Yuan passed the Virtual Asset Service Provider Act in its third reading, marking a shift from rules focused on anti-money laundering requirements to a broader regulatory framework covering business operations, stablecoin issuance, market conduct, and licensing.
The new law identifies seven categories of virtual asset service providers (VASPs), including exchanges, trading platforms, transfer service providers, custodians, underwriters, lenders, and other related businesses.
Under the legislation, these firms will be subject to requirements covering financial and business operations; qualifications of responsible persons and employees; internal control and audit systems; cybersecurity management; virtual asset listing and delisting review procedures; segregated custody of customer assets; outsourced operations; civil liability to customers; and financial reporting.
Stablecoin Rules Introduced
The legislation also outlines specific requirements for stablecoin issuance in Taiwan. Under the new framework, any entity seeking to issue stablecoins domestically must obtain the Central Bank’s consent and the FSC’s approval.
Issuers will also be required to have sufficient reserve assets, place those reserves under trusteeship, conduct regular audits, and provide ongoing information disclosures.
Law Includes Market Conduct and Licensing Requirements
The Act introduces provisions to prevent unfair market practices by expressly prohibiting fraud, deception, and price manipulation involving virtual assets.
Under the legislation, violations may result in prison sentences of 3 to 10 years, along with fines of NT$10 million to NT$200 million.
The implementation date will be determined by the Executive Yuan. Existing VASPs that completed anti-money laundering registration before the law takes effect, as well as financial institutions already providing related services under FSC regulations, must apply for an FSC license within 12 months after implementation and obtain approval within 21 months. A single three-month extension may be granted when necessary.
Following the bill’s passage, the FSC said the regulatory approach will expand beyond anti-money laundering oversight to cover broader operational and market requirements while strengthening protections for virtual asset traders. The commission also stated that the new stablecoin framework establishes a regulatory process for domestic issuance under the new law.
Related: Taiwan Targets Late 2026 for Stablecoin Debut; Banks to Gatekeep Issuance
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