New Regulation of Crypto Assets in Taiwan: What Impact for Investors?

Jakarta, Pintu News—On March 25, Taiwan’s Financial Supervisory Commission (FSC) announced a draft “Virtual Asset Service Act” that aims to improve regulatory clarity for virtual asset businesses and strengthen investor protection.

Check out the full information here!

Introduction to the Virtual Asset Services Act

The draft includes provisions for Virtual Asset Service Provider (VASP) licenses, stablecoin issuance standards, and measures to improve market integrity and protect investors.

Taiwan’s FSC has started a 60-day public consultation period, during which stakeholders can provide input on the draft. The plan is to submit the finalized law to the Executive Yuan on June 30.

Under the draft, banks in Taiwan are authorized to issue stablecoins tied to the New Taiwan Dollar, subject to approval from the FSC and meeting specified criteria. The FSC is also authorized to conduct inspections, enforce compliance, and impose sanctions for non-compliance.

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Investor Protection and Market Integrity

The draft law sets standards for VASPs, including requirements on organizational structure, capital, and personnel qualifications. These measures are expected to increase investor confidence and ensure that virtual asset service providers operate with high standards.

In addition, the FSC has the authority to conduct inspections and ensure that all VASPs comply with applicable regulations. To ensure market integrity, the FSC will oversee all transactions that occur within the virtual asset ecosystem.

This includes monitoring trading activities to prevent market manipulation and other illegal activities. Strict law enforcement and operational transparency are expected to attract more investors into Taiwan’s virtual asset market.

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Strategic Steps Toward Institutional Adoption

Since October 2024, the FSC has introduced updated Anti-Money Laundering measures, which require all VASPs to register with the government by September 2025.

This regulation will come into effect on January 1. Each VASP must also prepare a comprehensive risk assessment report annually and submit it to the FSC by the end of March of the following year. In addition, the FSC has launched a pilot program for crypto custody services as early as 2025 and has approved several foreign exchange-traded funds for professional investors.

These steps demonstrate the FSC’s commitment to encouraging institutional adoption of cryptocurrencies and increasing investor confidence in the virtual asset market.

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Reference

• Crypto News. Taiwan’s FSC Releases the Draft of Virtual Asset Service Act Outlining Crypto Regulations. Accessed on March 27, 2025
• Featured Image: Coinwire