Taiwan’s Virtual Asset Service Act is a dedicated virtual asset services bill for Taiwan. The Financial Supervisory Commission said the Legislative Yuan passed the Act on third reading on June 30, 2026. As of July 2, 2026, this profile treats the measure as passed but not yet in force because the FSC also stated that the Act’s commencement date will be set separately by the Executive Yuan.
Status and legislative timeline
The Act follows a multi-stage policy process led by the FSC. The regulator preannounced the draft on March 25, 2025, with a public comment period running from March 26 to May 24, 2025. The Executive Yuan approved the FSC draft on April 2, 2026 and sent it to the Legislative Yuan for review. The Legislative Yuan then completed third reading on June 30, 2026.
The current status question is important for readers. Passage by the legislature is not the same as operational commencement. The FSC’s June 30 statement says the commencement date will be set by the Executive Yuan. Until a promulgation and commencement notice are confirmed, CryptoSlate should describe the Act as passed and awaiting implementation rather than as fully in force.
Key provisions of Taiwan’s virtual asset services framework
VASP licensing and supervisory perimeter
The Act is designed to move Taiwan’s virtual asset service provider oversight beyond an anti-money laundering registration model and toward an FSC licensing framework. The FSC summary identifies seven VASP categories: exchange providers, trading platform providers, transfer providers, custody providers, underwriting providers, lending providers, and other service providers designated by the regulator.
For covered VASPs, the framework addresses business and financial operations, responsible-person and staff fitness, internal control and audit systems, cybersecurity systems, token listing and delisting review, segregation and custody of customer assets, outsourcing, civil liability to customers, and financial reporting. These topics make the Act broader than a narrow AML/CFT registration rule and closer to a prudential, conduct, and market-integrity regime. The Executive Yuan described the draft as intended to support orderly virtual asset business development, strengthen market management, protect trading participants, and promote financial technology innovation.
Stablecoin issuance and reserve rules
The Act also establishes a Taiwan-specific stablecoin framework. According to the FSC, issuing a stablecoin in Taiwan requires consent from the Central Bank of the Republic of China (Taiwan) and permission from the FSC. Issuers must maintain full reserve assets, place those assets in trust, undergo periodic checks, and provide information disclosures.
Market misconduct and enforcement
The FSC states that the Act prohibits unfair market conduct, including fraudulent conduct and price manipulation in virtual asset transactions. The FSC summary describes criminal penalties for violations of these conduct rules as imprisonment of three to ten years and a possible fine ranging from NT$10 million to NT$200 million.
Transition for existing VASPs
The Act includes a transition path for existing providers. The FSC said VASPs that had completed AML registration before commencement, and financial institutions already providing relevant services under FSC rules, must apply for FSC permission within 12 months after the Act takes effect and must obtain permission and a license within 21 months. The FSC summary also notes a possible one-time three-month extension where necessary.
Jurisdictional impact and implementation watchpoints
For Taiwan’s crypto market, the Act creates a dedicated statutory path for service-provider licensing, stablecoin issuance, customer-asset safeguards, and market-abuse enforcement. It should be read as a framework statute whose practical effect will depend heavily on delegated rules, licensing standards, and transition notices. The main implementation watchpoints are presidential promulgation, the Executive Yuan’s commencement order, and the FSC’s delegated rules. The FSC has said it will continue drafting authorized subordinate regulations and consulting industry associations and other stakeholders. This profile should be reviewed when those official materials are published.