Taiwan passes broad crypto law requiring VASP licenses, 100% stablecoin reserves and up to seven years in prison

Taiwan's Virtual Asset Service Act shifts the market from AML-only registration to full licensing and supervisory oversight, tightening custody, governance, segregation of client assets, and cybersecurity standards. Stablecoin issuance faces the highest bar via central bank/FSC approval and 100% reserve mandates, while penalties for unlicensed activity and manipulation are severe. Near-term, compliance costs and licensing timelines may reduce marginal activity and encourage consolidation among providers serving Taiwan.