pc
nid 93636
Jul 01, 2026
pthandapani@vixio.com
Taiwan
Financial Supervisory Commission (FSC) - Securities Bureau - Press releases
financial services
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2092 charsTaiwan's Legislative Yuan Passes Virtual Asset Services Law
On June 30, 2026, Taiwan's Legislative Yuan passed the Virtual Asset Services Law (VASL) on third reading. The Financial Supervisory Commission (FSC) expressed gratitude to legislators for their support and feedback, which it said strengthened the legislation.
The law establishes comprehensive regulation of virtual asset service providers (VASPs), defining seven categories: exchange operators, trading platform operators, transfer operators, custodians, underwriters, lending operators, and other service providers. The legislation mandates VASPs comply with financial and operational requirements, including fitness and propriety standards for directors and staff, internal control and audit systems, cybersecurity management systems, virtual asset listing and delisting review mechanisms, segregated customer asset custody, outsourcing arrangements, and civil liability provisions to customers. VASPs must also file financial reports.
The law explicitly regulates stablecoin issuance and management within Taiwan's jurisdiction. Stablecoin issuers must obtain approval from the Central Bank of the Republic of China (Taiwan) and the FSC, maintain full reserve assets, establish trust arrangements, and undergo periodic audits and information disclosure. The legislation strengthens market conduct rules, prohibiting fraudulent, deceptive, or price-manipulative behaviour. Violations carry penalties of three to ten years imprisonment and fines ranging from New Taiwan Dollar 10 million to 200 million.
Existing VASPs and financial institutions already providing related services under FSC regulations must apply for FSC permits within twelve months of the law's implementation and obtain licences within twenty-one months. The FSC may extend this transition period by three months once if necessary.
The FSC stated the law elevates VASP oversight from anti-money laundering focus to comprehensive operational and market conduct regulation, strengthening investor protections. The FSC will develop implementing regulations and engage stakeholders to complete the regulatory framework.
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1530 charsTaiwan's Legislative Yuan Passes Virtual Asset Services Law
Taiwan's Legislative Yuan has passed the Virtual Asset Services Law.
The enacted act contains:
New definitions for key terms including the types and scope of Virtual Asset Service Providers (VASPs), classifying them into seven categories such as exchanges, trading platforms, transferors, custodians, underwriters, lenders, and others.
Regulations prescribing the supervision of VASP operations, covering financial reporting, internal controls, IT security management, virtual asset listing and delisting review mechanisms, separation of customer assets, and civil liability to customers.
Specific rules mandating that the issuance of stablecoins within Taiwan requires prior consent from the central bank and approval from the FSC.
Provisions outlining strict requirements for stablecoin issuers, mandating them to maintain 100 percent reserve assets in trust and conduct regular audits and information disclosure.
Administrative measures detailing penalties to prevent unjust market practices, stipulating that fraudulent behavior or price manipulation will be punishable by 3 to 10 years of imprisonment and fines ranging from NT$10,000,000 (US$312,500) to NT$200,000,000 (US$6,250,000).
Directives requiring existing VASPs that have completed AML registration to apply for FSC permission within 12 months of the Act's implementation, and to obtain their licenses within 21 months, with a possible one-time extension of 3 months.
The law will go into force on a future date that will be specified by the Executive Yuan.