Taiwan's legislature has passed a virtual asset services law moving the market from anti-money laundering registration to a fuller licensing regime for crypto platforms, custodians, lenders and stablecoin issuers.
Taiwan Passes Crypto Services Law, Bringing Sector into Markets Framework
1 July 2026 - 18:29 CEST
By Matt Neill
The Financial Supervisory Commission (FSC), the governmental agency responsible for regulating financial markets and protecting investors, said in an announcement on 30 Jun that the law defines seven categories of virtual asset service providers, including exchanges, trading platforms, transfer firms, custodians, underwriters and lenders. Existing registered operators will have 12 months from the law's effective date to apply for a licence and 21 months to obtain one, with a possible three-month extension.
The law is significant because it shows Taiwan is turning crypto supervision into a full market framework rather than treating the sector mainly as a financial crime issue. That means crypto firms will face rules closer to those applied to regulated financial businesses.
Retail interest in cryptocurrencies is gathering pace in Taiwan. According to the US International Trade Administration, Taiwan's two largest cryptocurrency exchanges saw new user registrations jump by more than 50% in the second quarter of 2024.
Licensing moves beyond AML
The law covers internal controls, cybersecurity, customer asset segregation, listing and delisting procedures, outsourcing, financial reporting and civil liability to customers.
It also introduces market-abuse rules. Fraud, false conduct and price manipulation can carry prison terms of three to 10 years and fines of NT$10mn-NT$200mn ($314,000-$6.3mn).
Stablecoin rules take shape
Stablecoin issuance will require both central bank consent and FSC approval. Issuers must keep full reserve assets, place them in trusts, conduct regular checks and disclose information to the market.
That places stablecoins at the centre of Taiwan's wider crypto policy. Officials have been weighing digital assets not only as trading products, but also as part of financial infrastructure, payments and monetary sovereignty.
The vote follows earlier debate over whether Taiwan should audit government-held Bitcoin (BTC) and study its possible role in strategic reserves. That review did not amount to a reserve policy shift, but it showed lawmakers taking a more structured approach to digital assets.
The FSC said it will now draft supporting rules and consult industry groups and other stakeholders. The next stage will determine how strict the licensing regime becomes in practice, and which existing operators can meet the new standards.
