Taiwan’s FSC released the draft of ‘Virtual Asset Service Act’ outlining crypto regulations
Taiwan’s Monetary Supervisory Fee launched the draft of the “Digital Asset Service Act,” aiming to reinforce regulatory readability for digital asset companies and strengthen investor protections.
On March 25, Taiwan’s FSC unveiled the draft of the “Digital Asset Service Act,” outlining provisions for licensing of Digital Asset Service Suppliers, requirements for stablecoin issuance, and measures to reinforce market integrity and shield buyers.
Particularly, the draft outlines requirements for VASPs, together with necessities for organizational construction, capital, and personnel {qualifications}. It additionally authorizes banks to situation stablecoins pegged to the New Taiwan Greenback, contingent upon acquiring approval from the FSC and assembly the required standards. To make sure market integrity, the FSC can be granted authority to conduct inspections, implement compliance, and enact penalties for non-compliance.
The FSC has initiated a 60-day public session interval for stakeholders to supply suggestions on the draft, with plans to submit the finalized legislation to the Govt Yuan by June 30.
The “Digital Asset Service Act” initiative underscore Taiwan’s dedication to offering better regulatory readability for digital belongings, guaranteeing investor safety, and combating cash laundering. These efforts started in October 2024 when the FSC introduced up to date Anti-Cash Laundering measures, requiring all VASPs to register with the federal government by September 2025 or face penalties, with the rules taking impact on Jan. 1. As a part of these rules, VASPs should additionally put together a complete threat evaluation report annually and submit it to the FSC by the tip of March of the next 12 months.
Along with offering better regulatory readability for the crypto sector, FSC has been proactively encouraging institutional adoption of cryptocurrencies by way of a number of strategic initiatives. Notably, FSC has launched a pilot program for crypto custody companies in early 2025. It has additionally approved a number of overseas crypto exchange-traded funds for skilled buyers.
