Taiwan has taken a major step in monitoring its digital assets sector by enacting comprehensive new regulations for cryptocurrency operations.
On Tuesday, lawmakers in the Legislative Yuan approved the Virtual Asset Services Law on its third reading, forwarding it to President Lai Ching-te for official signing, which is expected within the next ten days.
Once signed, the Executive Yuan will set the official date for the regulation to come into force.
The legislation requires all virtual asset service providers, including cryptocurrency exchanges and platforms, to obtain an explicit license from the Financial Supervisory Commission (FSC) before they can legally operate in the country.
It also introduces higher standards for cybersecurity protection, separating customer funds from company assets and strengthening internal governance and risk management.
Platforms already registered for anti-money laundering will be given 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 companies operating in Taiwan only had to register to become anti-money laundering compliant.
