Taiwan Enacts Comprehensive Crypto Law, Moving Towards Full Financial Supervision
L'essentiel
- Taiwan's Legislative Yuan approved the Virtual Asset Service Act, transitioning crypto firms from AML registration to full financial supervision.
- The law sets standards for service providers, stablecoin issuers, and imposes strict penalties for non-compliance.
Résumé généré par IA
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Taiwan has moved from a light-touch registration system for crypto firms to a comprehensive financial supervision regime with the passage of the Virtual Asset Service Act.
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 Legislative Yuan approved the Virtual Asset Service Act on Tuesday, June 30, in its third reading. The bill now heads to President Lai Ching-te, who is expected to promulgate it within 10 days, after which the cabinet will set an effective start date for the rules.
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.
The penalties are steep. Running an unlicensed crypto platform or issuing stablecoins without authorization can bring up to seven years in prison and fines of up to NT$100 million, or $3.1 million. Fraud or market manipulation carries three to 10 years behind bars and fines ranging from NT$10 million to NT$200 million, about $314,000 to $6.3 million.
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President Lai Ching-te will promulgate the Virtual Asset Service Act within 10 days.
Très probable · En quelques jours
Questions ouvertes
- What will be the exact effective start date for the rules?
- How will the FSC enforce the new standards?
- What is the global impact of Taiwan's new crypto law?
