Taiwan Passes Landmark Crypto Law With Strict VASP Licensing

Stablecoin issuance requires FSC approval. Any token pegged to the Taiwan dollar or foreign currencies needs authorisation before launch. The provision targets dollar-pegged tokens that have gained local trading volume.

The regulatory model mirrors the European Union's MiCA framework, which requires exchanges and stablecoin issuers to hold an authorised licence in at least one member state. Taiwan adds local requirements around capital reserves and operational audits. For context on how similar licensing has reshaped exchange operations in Europe, see our coverage of Binance's MiCA adjustments.

The law passed with relatively little advance warning. The FSC published a draft in late 2024. The final text broadened the VASP definition to include peer-to-peer platforms and over-the-counter desks. That expansion caught some firms off guard.

The new law gives exchanges a formal legal status. Several Taiwanese lenders had refused to open accounts for crypto firms due to regulatory uncertainty. With a licensing regime in place, banks may find it safer to serve the industry.

Japan and Singapore already operate licensing regimes. South Korea is finalising similar rules under the Virtual Asset User Protection Act. Taiwan's adoption continues a regional trend toward standardised exchange oversight.