Taiwan’s FSC released the draft of ‘Virtual Asset Service Act’ outlining crypto regulations

The Taiwan Supervision Financial Commission has published the “Virtual Asset Service Act” project, aimed at improving the regulatory clarity of virtual asset companies and strengthening investor protections.

March 25, TAIWAN FSC revealed The project of the “Virtual Asset Services Law”, describing the provisions for the granting of licenses of virtual asset service providers, Stablecoin emission standards and measures to improve market integrity and protect investors.

More specifically, the project describes the standards for Vaspes, including requirements for organizational structure, capital and personnel qualifications. It also authorizes banks to emit stablecoins fixed to the new Taiwan dollar, subject to the approval of the FSC and to the satisfaction of the specified criteria. To guarantee the integrity of the market, the FSC is also authorized to perform inspections, apply compliance and promulgate sanctions for non-compliance.

The FSC launched a 60 -day public consultation period for stakeholders in order to provide comments on the project, with plans to submit the law finalized to the executive Yuan by June 30.

The “Virtual Asset Service Act” initiative underlines Taiwan’s commitment to provide greater regulatory clarity for virtual assets, to ensure the protection of investors and to combat money laundering. These efforts began in October 2024 when the FSC presented Updated measures to combat money laundering, forcing all VALPs to register with the government by September 2025 or to deal with penalties, the regulations taking effect on January 1. As part of these regulations, VASPs must also prepare a full risk assessment report each year and submit it to the FSC by the end of March of the following year.

In addition to providing greater regulatory clarity for the cryptography sector, the FSC has proactively encouraged the institutional adoption of cryptocurrencies thanks to several strategic initiatives. In particular, FSC launched a Pilot program for cryptography custody services at the beginning of 2025. He also approved Several funds negotiated in exchange for foreign crypto against professional investors.