Taiwan’s Financial Supervisory Board has released a draft “Virtual Asset Services Act” with the aim of increasing clarity in regulations on virtual asset businesses and increasing the protection of investors.
On March 25, Taiwan’s FSC announced a draft of the Virtual Asset Services Act, outlining provisions regarding the licensing of virtual asset service providers, standards for issuing Stablecoin, and measures to increase market integrity and protect investors.
Specifically, the draft outlines the VASP standards, including organizational structure, capital and personnel qualification requirements. It also allows banks to issue Stablecoins fixed to new Taiwan Dollars provided they obtain approval from the FSC and meet the specified criteria. To ensure market integrity, the FSC is also authorized to conduct inspections, enforce compliance and enact penalties for violations.
The FSC has launched a 60-day public consultation period for stakeholders to provide draft feedback with plans to submit the final law to enforcers by June 30th.
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The Virtual Asset Services Act initiative highlights Taiwan’s commitment to increasing regulatory clarity on virtual assets, ensuring investors’ protection and providing the fight against money laundering. These efforts will introduce an updated anti-money laundering by the FSC in October 2024, requiring that all VASPs be registered with the government by September 2025, or regulations will come into effect on January 1, and as part of these regulations, VASPs must prepare a comprehensive risk assessment report each year and submit it to the FSC by March of the following year.
In addition to increasing regulatory clarity in the Crypto sector, the FSC has actively encouraged the institutional adoption of cryptocurrencies through several strategic initiatives. In particular, FSC launched its Crypto Custody Services pilot program in early 2025. It has also approved several foreign crypto exchange sales funds for professional investors.
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