Taiwan passes Virtual Asset Service Act on June 30, naming FSC sole crypto regulator
AI Market Summary
Taiwan's passage of the Virtual Asset Service Act formalizes a shift from AML registration to full licensing under sole FSC oversight, tightening compliance for exchanges, custodians, and wallets while adding criminal penalties for manipulation and fraud. New stablecoin rules restrict domestic issuance to banks with 1:1 fiat reserves and reclassify offshore stablecoins (e.g., USDT/USDC) as regulated commodities requiring FSC-approved local listings, potentially reshaping regional access and liquidity.
Impact level
● Medium
Affected assets
BTC/USDT+0.79%
AI Insight · BTC/USDTAI Insight
● Neutral
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Taiwan’s legislature passed the Virtual Asset Service Act on June 30, creating the island’s first dedicated cryptocurrency law and placing the Financial Supervisory Commission in charge as the sole regulator. The bill shifts VASPs into a full licensing regime and sets Taiwan’s first stablecoin rules, allowing only banks to issue domestic stablecoins backed 1:1 by fiat reserves. Offshore stablecoins such as USDT and USDC are classified as regulated commodities and would require FSC approval and listing on a licensed local exchange to circulate to Taiwan users. The law is expected to take effect in early 2027, with implementing rules due by Q1 2027.
