Taiwan’s legislature passes crypto, stablecoin regulations
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- Taiwan's legislature passed crypto and stablecoin regulations covering seven types of VASPs — including exchanges, trading platforms, custodians and lenders — mandating internal controls, audits, cybersecurity systems, listing/delisting rules, customer asset segregation and financial reporting.
- Crypto fraud and price manipulation are now criminal offenses in Taiwan, carrying 3-10 years imprisonment and fines from roughly NT$10 million ($300,000) to NT$200 million ($6.3 million).
- Unlicensed VASP operators or stablecoin issuers face up to seven years in prison and fines up to NT$100 million ($3.1 million), according to Taiwan's national news agency CNA.
- The Financial Supervisory Commission will require VASPs already registered under its anti-money laundering program, and institutions providing related services, to apply for a license within 12 months after the bill is implemented.
- The implementation date remains undetermined; the law takes effect only after publication by Taiwan's executive branch (the Executive Yuan).
- Taiwan's lawmakers separately passed a resolution directing the FSC to propose a plan within one year for derivative crypto commodity services, aiming to diversify investment options.
Why it matters: VASPs already operating under Taiwan's AML registration must obtain licenses within 12 months of implementation or risk up to seven years in prison — a tight compliance runway to meet new standards on asset segregation, cybersecurity and financial reporting. The companion derivative resolution indicates regulators are already planning beyond spot trading toward more complex crypto products.
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