Taiwan’s legislature just gave crypto companies a clear message: get licensed or get out. The Legislative Yuan passed the Virtual Asset Services Act on June 30, marking the country’s first comprehensive regulatory framework for digital assets.
The law replaces Taiwan’s existing anti-money laundering registration system with a full licensing regime overseen by the Financial Supervisory Commission (FSC). Any platform offering exchange, custody, or transfer services for digital assets now needs FSC approval before operating.
What the law actually requires
The Virtual Asset Services Act covers a lot of ground, but the headline item is straightforward: virtual asset service providers (VASPs) must secure a license from the FSC. Operating without one isn’t just a regulatory slap on the wrist. Non-compliance carries penalties of up to seven years in prison and fines as high as NT$100 million, roughly $3.2 million.
For platforms already operating under the old AML registration system, there’s a transitional runway. Existing VASPs get a 12-month window to submit their license applications, with an additional 21 months to secure full approval.
