Taiwan has taken a major step forward in policing its digital asset sector by introducing sweeping new regulations for cryptocurrency operations.
On Tuesday, lawmakers in the Legislative Yuan approved the Virtual Asset Service Law during its third reading and sent 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 for the regulations.
The legislation requires all providers of virtual assets, including cryptocurrency exchanges and platforms, to secure an explicit license from the Financial Supervisory Commission (FSC) before they can legally operate in the country.
It also introduces tougher standards around cyber security protection, keeps customer funds separate from company assets and strengthens internal governance and risk management.
Platforms 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 necessary permits. Until now, crypto companies operating in Taiwan only needed to register for anti-money laundering compliance.
