Taiwan is moving forward with crypto regulation as both the Financial Supervisory Commission (FSC) and lawmaker Huang Shan-shan have introduced separate versions of a Virtual Asset Service Act.
The proposed regulations would require all crypto platforms operating in Taiwan to apply for a license, while overseas providers would need to establish local entities and obtain Taiwanese licenses. Public feedback on the FSC’s draft is open until May 24, with a plan to submit it to the Executive Yuan by June, while Huang hopes to pass her version by the end of 2025.
Many crypto firms are concerned that the new rules will significantly increase compliance costs, making it difficult for smaller businesses to survive. Taiwan’s current anti-money laundering (AML) regulations already impose strict requirements, with non-compliance leading to fines of up to NT$5 million ($150,400) or even two years in prison.
Kevin Cheng of the Taiwan Fintech Association warns that under the new framework, even firms with NT$300 million to 500 million in capital may struggle. Meanwhile, Binance’s APAC team highlights the need for cross-border liquidity to maintain a stable trading environment.
As Taiwan moves closer to implementing a dedicated crypto law, the industry could see major changes, bringing regulation on par with traditional finance.
The key challenge will be ensuring that investor protection and compliance measures do not come at the cost of innovation and market growth.
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