Taiwan has passed one of Asia's most comprehensive crypto laws, moving the island from light-touch registration toward full financial supervision of the sector.
The Financial Supervisory Commission, which will oversee the regime, said the law shifts its supervision of crypto firms from an anti-money-laundering registration system to broader oversight of their operations and of market order. Until now, businesses providing crypto services in Taiwan needed only to complete AML procedures and register.
The act defines seven categories of virtual asset service provider: exchanges, trading platforms, transfer providers, custodians, underwriters, lenders, and a catch-all for others. Licensed firms will have to meet standards on personnel fitness, internal controls and audit, cybersecurity, and the review process for listing and delisting assets. They must also keep customer assets segregated from company funds, disclose financial reports, and take civil liability toward clients — including for work they outsource.
Firms already registered for AML compliance get a transition window under which they must apply for a license within 12 months of the act taking effect and obtain full approval within 21 months, with a single three-month extension available. Those that miss the deadline will be barred from continuing to operate.
Stablecoin issuers face a higher bar. Issuing a stablecoin domestically requires both the central bank's consent and permission from the FSC, and issuers must hold full reserve assets placed in trust, subject to regular audits and public disclosure.
