What did Taiwan's Virtual Asset Service Act actually change?

It replaced a 2021 anti-money-laundering registration regime with a full licensing statute. Virtual asset service providers now need a license to operate legally, stablecoin issuance is regulated for the first time, and unlicensed activity carries criminal penalties of up to seven years in prison.

Does this affect BTC or ETH prices?

Not directly. There's no Taiwan-specific listed coin catalyst. The impact is on regional exchange structure and stablecoin distribution, which shapes institutional flow into Asia over quarters, not hours.

When does the licensing regime take effect?

The Financial Supervisory Commission is expected to publish implementing rules with a transition window for existing operators. Timing hasn't been announced. Watch the FSC's public notices.

Taiwan Passes First Comprehensive Crypto Law, Sets Licensing Regime and Stablecoin Rules

Q: How does Taiwan's law compare to Hong Kong, Singapore, and Japan?

It puts Taiwan in the same tier. Hong Kong runs a VASP licensing regime since 2023, Singapore licenses under the Payment Services Act since 2020, and Japan has licensed exchanges since 2017. Taiwan was the AML-only holdout until Tuesday.

Taiwan's legislature passed the island's first comprehensive crypto law on Tuesday, establishing a licensing regime for virtual asset service providers, a formal stablecoin framework, and criminal penalties of up to seven years in prison for unlicensed operations, per a Bitcoin Magazine report Tuesday. The bill formalizes an industry that has operated under a patchwork of anti-money-laundering registrations since 2021 and pushes Taiwan into the same regulatory tier as Hong Kong, Singapore, and Japan.

By Elena Stojanović· AI-assisted· Regulation correspondent

What happened

Taiwan's Legislative Yuan passed the Virtual Asset Service Act on Tuesday, according to a Bitcoin Magazine report by Micah Zimmerman. It's the island's first standalone crypto statute. The law creates a licensing regime for virtual asset service providers, sets rules for stablecoin issuance, and imposes prison sentences of up to seven years for firms that operate without a license.

Until now, crypto businesses in Taiwan lived under a 2021 anti-money-laundering registration regime overseen by the Financial Supervisory Commission. That framework required exchanges to register and follow AML rules but didn't license them, didn't cover stablecoins in any detail, and didn't carry criminal weight for unlicensed operations. Tuesday's vote replaces the patchwork with a single statute.

The FSC is expected to issue implementing rules that spell out capital requirements, custody standards, and the application timeline for existing operators.

Why it matters

Taiwan sits in a corridor of Asian jurisdictions that spent 2024 and 2025 racing to codify crypto rules. Hong Kong launched its VASP licensing regime in 2023 and approved spot bitcoin and ether ETFs in 2024. Japan has run a licensing framework since 2017 and tightened stablecoin rules in 2023.

Singapore's MAS has issued digital payment token licenses under the Payment Services Act since 2020. Taiwan was the notable holdout, running a lighter AML-only regime while its neighbors built full statutory frameworks. The Virtual Asset Service Act closes that gap.

For exchanges operating locally, including MaiCoin and BitoPro, the practical impact is a compliance clock. For stablecoin issuers, it's the first time Taiwan has drawn a legal perimeter around issuance, reserves, and redemption. The seven-year criminal exposure is the sharpest tooth in the bill.

Taiwan Passes First Comprehensive Crypto Law, Sets Licensing Regime and Stablecoin Rules

What happened

Why it matters

Market impact

What to watch

Disclaimer

Key takeaways

Frequently asked

Sources