Overnight and Morning News Highlights (July 1 - July 2)

Taiwan passes first dedicated crypto law, the Virtual Asset Service Act, clarifying regulatory framework. Taiwan's Legislative Yuan passed the Virtual Asset Service Act on third reading, establishing a complete regulatory framework for virtual asset service providers (VASPs) and stablecoin issuers. The act 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 approval from both the central bank and the FSC, and must maintain sufficient reserves. Unauthorized operation of VASP or stablecoin business can result in a maximum of 7 years imprisonment and a fine of NT$100 million. Fraud or market manipulation can result in 3 to 10 years imprisonment and a fine of NT$10 million to NT$200 million. Jeremy Allaire responds to OUSD competition: