- Taiwan’s Financial Supervisory Commission (FSC) has introduced a draft for the registration of Virtual Asset Service Providers (VASP) to strengthen anti-money laundering regulations
- The new rules are set to take effect in the new year, with strict compliance requirements for virtual asset businesses operating in Taiwan
- A specialized law on virtual assets will be submitted to the Executive Yuan by June of next year, incorporating feedback from international regulatory frameworks
Taiwan’s Financial Supervisory Commission (FSC) has released a draft of the Virtual Asset Service Provider (VASP) Registration Measures aimed at tightening the regulation of virtual asset services in the country. Alongside this, amendments to Taiwan’s anti-money laundering laws are in development, with the changes expected to come into force on January 1, 2025. The FSC is also working on a special law for virtual assets, which will be submitted to the Executive Yuan by June 2025 after drawing insights from global regulatory standards.
Penalties for Non-Compliance
Taiwan’s new regulations make it the latest country to fall in line with international best practices on virtual asset regulation, with the FSC’s new draft measures requiring companies providing virtual asset services to register with the authorities. Those that fail to register by September 2025 may face severe penalties, including a fine of up to NT$5 million ($154,500) and a prison sentence of up to two years.
Huang Houming, deputy director of the Securities and Futures Bureau, emphasized the importance of compliance, noting that 26 companies have already completed their compliance statements and must now meet these additional registration standards.
Global Regulatory Influence
The FSC has been influenced by the manner in which other countries, such as the European Union, Japan, Hong Kong, the UK, and South Korea, have regulated virtual assets when developing its own framework. As a result, the commission is working to draft a specialized law for Taiwan, expected to be ready by December, which Huang said would “address key aspects like capital requirements and the qualifications of personnel, in addition to implementing stronger customer protections.”
These qualifications will include “positive” requirements, such as professional management capabilities, and “negative” restrictions that prevent individuals with criminal or bankruptcy records from being involved in the operation or management of virtual asset businesses.
Taiwan’s FSC is also considering introducing capital thresholds for virtual asset companies, which would create more robust oversight of the industry.
