Taiwan Proposes new Virtual asset Regulations
Taiwan’s Financial Supervisory Commission (FSC) has unveiled a draft of the “Virtual Asset Service Act.” This move aims to bring more clarity to virtual asset businesses adn protect investors.
On March 25, the FSC released the draft. It sets rules for Virtual Asset Service Providers (VASPs), stablecoin issuance, and market integrity. The draft requires VASPs to meet certain standards,like having the right organizational structure,capital,and qualified personnel.
It also allows banks to issue stablecoins tied to the New Taiwan Dollar. However, they must get FSC approval and meet specific criteria.The FSC can inspect VASPs, enforce rules, and penalize non-compliance.
The FSC is now seeking public feedback for 60 days. The finalized law will be submitted to the Executive Yuan by June 30. This initiative shows Taiwan’s dedication to clear crypto regulations and investor protection.
These efforts started in October 2024. The FSC updated Anti-Money Laundering measures. All VASPs must register by September 2025 or face penalties. VASPs must also submit a yearly risk assessment report by March of the following year.
Moreover, the FSC is promoting institutional crypto adoption. It launched a crypto custody pilot program in early 2025. It also approved several foreign crypto exchange-traded funds for professional investors.
