Taiwan passes key crypto law, raising the bar with with licensing, reserve mandates, and tough penalties | Crypto Regulation News
Crypto regulation news: Taiwan passes key crypto law, raising the bar with with licensing, reserve mandates, and tough penalties. This update explains what changed, why it matters for the crypto market, and what investors, exchanges, and blockchain companies should watch next.
Crypto Regulation Update
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 Service Act during its third reading, forwarding it to President Lai Ching-te for formal signing, which is anticipated within the next ten days.Once signed, the Executive Yuan will set the official start date for the rules.The legislation requires all virtual asset service providers, including cryptocurrency exchanges and platforms, to secure explicit licensing from the Financial Supervisory Commission (FSC) before they can legally operate in the country.It also brings in tougher standards around cybersecurity protections, keeping customer funds separate from company assets, and strengthening internal governance and risk management.Platforms that are already registered for anti-money laundering compliance will receive 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 businesses operating in Taiwan only needed to register for anti-money laundering compliance.
Why This Crypto Regulation News Matters
First, this development may affect exchanges, token listings, stablecoins, compliance rules, and market sentiment. In addition, it may influence licensing, reporting requirements, and future enforcement actions. As a result, traders and investors should watch the next legal and policy steps closely.
What to Watch Next
Watch for follow-up statements from regulators, court filings, exchange responses, and policy updates. In particular, any new guidance on licensing, enforcement, or stablecoin rules could have a direct impact on the broader crypto market.
