Taiwan Passes First Crypto-Specific Law 'Virtual Asset Service Act' Clarifying Regulatory Framework

CoinFeed, July 1 – according to The Block, Taiwan, China's Legislative Yuan passed the third reading of the Virtual Asset Service Act, establishing a complete regulatory framework for virtual asset service providers (VASPs) and stablecoin issuers. The bill stipulates that crypto platforms must obtain a license from the Financial Supervisory Commission (FSC) before operating and meet stricter cybersecurity, customer asset segregation, and internal control requirements; platforms that have completed anti-money laundering registration must apply for a license within 12 months after the new law takes effect and obtain FSC approval within 21 months. Stablecoin issuance and management require simultaneous approval from the central bank and the FSC, and must maintain sufficient reserves. Unauthorized operation of VASP or stablecoin business can result in up to 7 years imprisonment and a fine of NT$100 million, while fraud or market manipulation can lead to 3 to 10 years imprisonment and a fine of NT$10 million to 200 million.