Projeto de Lei de Serviços de Ativos Virtuais de Taiwan aprovado na comissão do legislativo, avançando rapidamente para a terceira leitura, com implementação prevista para o próximo ano.

Taiwan's first "Virtual Asset Service Law" was completed on June 3rd in the Legislative Yuan's Finance Committee, passing line-by-line review with cross-party consensus, without the need for legislative negotiations, and will be sent directly to the plenary session. The bill covers licensing of VASPs, stablecoin issuance, customer asset segregation, and anti-fraud measures. Previously, Financial Supervisory Commission Chair Peng Jinlong stated that after the third reading, at least six months are needed to complete the formulation of nine subordinate laws, with full implementation expected in the first half of 2027.
（Background summary: Taiwan Stock Exchange issued two major guidelines: "Stablecoin Trading Accounting Treatment" and "Internal Control System for Cryptocurrency Holdings"）
（Additional background: HzBit Hong Zhu Digital announced "immediate cessation of operations"! Taiwan VASP operators remaining at 8）

Key Highlights

• Taiwan's first "Virtual Asset Service Law" with 56 articles passed committee review, cross-party consensus without negotiation
• Financial institutions can also operate VASPs; stablecoin issuance requires approval from the FSC and consultation with the Central Bank; legislators request FSC to develop regulations for derivatives
• After the third reading, at least 6 months are needed to complete the nine subordinate laws; existing 8 operators have a 18-month transition period for licensing

Three years ago, the collapse of FTX caused over 300,000 investors in Taiwan to lose about 60 billion TWD, which spurred the legislative momentum for this special law. On June 3rd, the Legislative Yuan's Finance Committee, chaired by Lee Yen-hsiu, completed the line-by-line review of all 56 articles of the "Virtual Asset Service Law." Cross-party members including Kuomintang's Lai Shih-po and Ko Ru-chun, Democratic Progressive Party's Chung Chia-pin and Lin Chu-yin, as well as members of the Taiwan People's Party participated in discussions. Ultimately, all articles were agreed upon and passed without the need for legislative negotiations.

The Executive Yuan formally submitted the draft on April 2nd this year, making it a priority bill for this session, aiming to complete the third reading by approximately July.

Banks can also operate VASPs; derivatives to follow within a year

The bill is divided into nine chapters, with core structures covering VASP classification and licensing (Articles 6-12), joint management standards (Articles 13-23), stablecoin regulation (Articles 34-41), and penalties (Articles 47-54, with fraud and manipulation punishable by up to 10 years imprisonment and a fine of 200 million TWD).

Article 6 defines seven major business categories: virtual asset exchange, trading platform operation, transfer services, custody, underwriting, lending, and other businesses approved by the competent authority. Article 7 opens the possibility for financial institutions to operate virtual asset businesses with permits, without establishing subsidiaries, applying directly with existing banking licenses for VASP qualification.

Legislator Ko Ru-chun, during review, requested FSC to complete the draft management measures for virtual asset derivatives within one year after the law's implementation, with semi-annual reviews to gradually include new services such as perpetual contracts, copy trading, delegated management, and options. Regarding platform listing and delisting reviews, this review process will be explicitly defined in subordinate laws, with a 15-day principle.

Regarding stablecoins, Articles 34-36 stipulate issuance must be approved by FSC and coordinated with the Central Bank, with issuers required to maintain equivalent reserves, independent custody, and regular audits, and are prohibited from paying interest to holders. For offshore stablecoins (such as USDT, USDC) to be traded in Taiwan, approval is also required.

Three readings aim to pass within this session; existing 8 operators must obtain licenses

After committee approval, the bill will be sent directly to the plenary for second and third readings. Lee Yen-hsiu clearly stated the goal of completing the third reading within this session. FSC Chair Peng Jinlong previously pointed out that even after the third reading, at least six months are needed to complete the nine subordinate laws (eight VASP supervision laws and one stablecoin law), with full implementation estimated in the first half of 2027.

For existing operators, the bill includes transitional provisions: applications must be submitted within nine months of enactment, and licenses obtained within 18 months. Currently, only 8 VASP companies in Taiwan have completed anti-money laundering registration (MaiCoin, BitoGroup, XREX, He Ya, Fusheng, Cross Chain, Tuo Huang, Zhongliang), a significant reduction from about 26 operators at the beginning of 2024.

In terms of financial institutions, Union Bank has invested approximately USD 27.8 million to acquire nearly 10% of MaiCoin Group's parent company; KGI/CITIC has invested in XREX; Fubon Financial Holding launched TWEX exchange through Fusheng Digital; at least four financial holdings are actively negotiating VASP acquisitions.

Legislator Ko Ru-chun emphasizes that FSC needs to promote the establishment of a "Financial Technology Innovation Development Fund" to subsidize fintech R&D, cybersecurity resilience, and talent cultivation.

The bill will take at least several months to come into effect. During this vacuum period, the 8 existing operators need to prepare for licensing, and new entrants must consider compliance costs. Those who start early may not necessarily arrive first, but those unprepared will find it very difficult to operate.

Frequently Asked Questions

When will Taiwan's Virtual Asset Service Law officially come into effect?

The bill aims to complete the third reading within this session (by around July), but even after the third reading, at least six months are needed to formulate the nine subordinate laws. Full implementation is expected in the first half of 2027. Existing VASP operators have an 18-month transition period to obtain licenses.

How many legal virtual asset operators are currently in Taiwan?

Eight VASPs have completed anti-money laundering registration, including MaiCoin, BitoGroup, XREX, He Ya, Fusheng, Cross Chain, Tuo Huang, Zhongliang, significantly reduced from about 26 before the regulation took effect.