Key facts
- Taiwan's legislature passed its first comprehensive crypto law.
- The law regulates virtual asset service providers (VASPs) and stablecoins.
- All VASPs operating in Taiwan must obtain a license.
- Stablecoin issuers are required to maintain full reserves.
- The law imposes strict penalties for non-compliance.
- The goal is to integrate Taiwan with global crypto markets and enhance consumer protection.
Taiwan's legislature has passed a landmark, comprehensive law to regulate the virtual asset service provider (VASP) and stablecoin sectors. This marks the island's first dedicated legal framework for the cryptocurrency industry. Under the new legislation, all VASPs operating within Taiwan are required to obtain a license. Furthermore, issuers of stablecoins are mandated to maintain full reserves to ensure the stability and backing of their digital assets. The law also establishes a system of strict penalties for any non-compliance with its provisions. The government's objective with this new regulatory regime is to bolster consumer protection and align Taiwan's cryptocurrency market with global standards and practices. This proactive approach seeks to foster a more secure and trustworthy environment for digital asset transactions and innovation within Taiwan.