The Financial Supervisory Commission (FSC) unveiled a draft of the "Virtual Asset Service Act" on June 25, establishing specialized regulations for managing crypto and virtual asset industries.
Key Provisions of the Draft Act
- Stablecoin Regulation: Foreign stablecoins must obtain regulatory approval for issuance/delisting in Taiwan
- Exchange Oversight: Crypto exchanges will face stricter listing/delisting audits to enhance market transparency
- Investor Protections: Rigorous project reviews aim to reduce information asymmetry risks
Ten companies have already applied for registration under the proposed framework, which is expected to take effect by late 2025.
Industry Perspectives
Hoya BIT founder Peng Yun-hsien supports the regulatory objectives but suggests refinements:
- Clearer timelines for new coin approvals
- Buffer periods for risky asset delistings
- Standardized review criteria for consistent implementation
The act marks a significant maturation of Taiwan's crypto market, transitioning from ambiguous oversight to structured regulation. This shift is anticipated to:
- Deter fraudulent activities
- Create growth opportunities for compliant operators
- Enhance Taiwan's global competitiveness in blockchain innovation
👉 Learn about global crypto regulations
FAQ: Taiwan's Virtual Asset Regulations
Q: How will stablecoins be regulated?
A: All foreign stablecoin issuances require FSC approval before entering Taiwan's market.
Q: What protections exist for investors?
A: Exchanges must implement rigorous project reviews evaluating technical viability, legal compliance, and market validity.
Q: When will the law take effect?
A: The draft suggests implementation could begin in late 2025 following legislative approval.
Q: How many exchanges currently operate in Taiwan?
A: While exact numbers aren't disclosed, 10 companies have begun compliance registration.
Q: Will this affect crypto prices?
A: Short-term volatility may occur during implementation, but long-term market stabilization is expected.
👉 Explore compliant crypto exchanges
The act represents Taiwan's proactive approach to balancing innovation with consumer safeguards—positioning itself as a regional leader in responsible digital asset development.