Taiwan legislature passes Virtual Asset Service Act, introducing licensing and penalties up to 7 years in prison and NT$100 million
AI Market Summary
Taiwan passed a comprehensive Virtual Asset Service Act, shifting from AML registration to mandatory, activity-specific licensing under the FSC, with severe criminal penalties for unlicensed operations. The law also introduces strict stablecoin rules, limiting issuance to domestic banks with 1:1 fiat reserves and requiring approval for foreign stablecoin listings. The framework improves regulatory clarity but raises compliance costs and could reduce near-term access to some tokens.
Impact level
● Medium
Affected assets
BTC/USDT+0.70%
AI Insight · BTC/USDTAI Insight
● Neutral
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On July 6, 2026, Taiwan’s legislature passed the Virtual Asset Service Act, creating the island’s first comprehensive crypto regulatory framework. The law designates the Financial Supervisory Commission (FSC) as the sole regulator and requires all virtual asset service providers to obtain category-specific licenses. It also sets penalties of up to seven years in prison and fines of up to NT$100 million, while limiting stablecoin issuance to domestic banks with 1:1 fiat reserves. Existing firms will have a 12–21 month transition period, with full implementation expected in early 2027.
