Key facts
- Taiwan has enacted its first comprehensive cryptocurrency law.
- The law establishes a licensing regime for virtual asset service providers.
- It includes regulations for stablecoins.
- Penalties for unlicensed operations can include up to seven years in prison.
- The regulations aim to align Taiwan's market with global standards.
Taiwan has enacted its first comprehensive cryptocurrency law, establishing a licensing regime for virtual asset service providers and implementing regulations for stablecoins. The Virtual Asset Service Act aims to align the island's digital asset market with global standards.
Under the new legislation, companies operating in the virtual asset space must obtain licenses and adhere to stricter standards. Penalties for non-compliance, including operating without a license, can result in up to seven years in prison. The law also introduces specific rules for stablecoins, further formalizing the digital asset industry in Taiwan.