Taiwan has taken a major step forward in overseeing its digital asset sector by enacting comprehensive new regulations for cryptocurrency operations.
On Tuesday, lawmakers in the Legislative Yuan approved the Virtual Asset Services Law during its third reading and forwarded it to President Lai Ching-te for formal signature, which is expected within the next ten days.
Once signed, the Executive Yuan will set the official start date of the rules.
The legislation requires all virtual asset service providers, including cryptocurrency exchanges and platforms, to obtain an explicit license from the Financial Supervisory Commission (FSC) before they can legally operate in the country.
It also introduces stricter standards for cybersecurity protection, keeps client funds separate from company assets, and strengthens internal governance and risk management.
Platforms already registered to comply with anti-money laundering regulations will be given a 12-month grace period to submit license applications and up to 21 months in total to obtain full FSC approval and any other required permits. Until now, crypto companies operating in Taiwan only needed to register to comply with anti-money laundering regulations.
