Taiwan’s legislature passes crypto, stablecoin regulations
Taiwan passed its first law regulating crypto and stablecoins, requiring all virtual asset service providers to obtain FSC approval to operate. The framework covers seven VASP categories, including exchanges, custodians, lenders and trading platforms, and sets rules for internal controls, audits, cybersecurity, token listing/delisting, customer asset segregation and financial reporting. Stablecoins issued in Taiwan must be approved by both the central bank and FSC, backed by sufficient reserves held with a trustee, and subject to regular audits. The law criminalizes crypto fraud, price manipulation and unlicensed operation, with penalties of up to seven years in prison and fines up to NT$100 million. The implementation date is still pending, and current AML-registered firms will need to apply within 12 months after enactment.
