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      Taiwan's Financial Supervisory Commission Drafts Regulations for Virtual Asset Service Act

      Taiwan's Financial Supervisory Commission (FSC) is advancing its regulatory framework for cryptocurrencies with the drafting of nine sets of regulations under the Virtual Asset Service Act, aiming for implementation by the first quarter of 2027. This legislation, which consists of 56 articles, was approved by the Legislative Yuan on June 30, 2026, and marks a significant shift from the previous anti-money laundering registration system to a comprehensive licensing regime.

      FSC Chairman Peng Jin-lung announced on September 2, 2026, that the new regulations will cover various crypto activities, including exchanges, trading platforms, custody, and stablecoin issuance. Each category of operation will require a separate license, and firms providing multiple services will need distinct approvals. The Act also introduces specific requirements for domestic stablecoin issuers, mandating them to maintain reserves and obtain FSC permission, while foreign stablecoins will be classified as commodities.

      The transition to this new regulatory framework will not be immediate. Existing virtual asset service providers will have a 12-month period to apply for licenses, with a maximum of 21 months to achieve compliance. New entrants will face immediate licensing requirements. Violations of the licensing rules could result in severe penalties, including imprisonment and substantial fines.

      The FSC aims to align Taiwan's regulations with international standards, referencing frameworks from the EU, Japan, and South Korea. Future regulatory developments may include oversight of virtual asset derivatives, indicating a proactive approach to the evolving crypto landscape in Taiwan.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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