Taiwan’s sweeping crypto law raises the bar with licensing, reserve mandates, and tough penalties
CoinDesk 2026-07-01 05:04:14
Context: Taiwan has passed a comprehensive new law to regulate its cryptocurrency sector, requiring virtual asset service providers to obtain licenses and comply with stricter operational, governance, and custody standards. The legislation, which has been forwarded to President Lai Ching-te for final approval, aims to shift the country's oversight of digital assets from basic anti-money laundering compliance to full-scale regulatory supervision. The law is expected to come into effect after the Executive Yuan sets the official start date.
Key Facts
- The Virtual Asset Service Act requires all virtual asset service providers, including cryptocurrency exchanges and platforms, to secure explicit licensing from the Financial Supervisory Commission (FSC) before they can legally operate in Taiwan.
- 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 and any other required permits.
- Stablecoin operators must win approval from both the central bank and the FSC, while maintaining 100% asset reserves at all times, and face tougher hurdles than other virtual asset service providers.
- Unauthorized operation of crypto platforms or stablecoin services could result in prison sentences of up to seven years and penalties of up to NT$100 million (about $3.14 million).
- Market fraud or price manipulation offenses carry even stiffer sanctions, including three to ten years behind bars and fines ranging from NT$10 million to NT$200 million.