Taiwan's Financial Supervisory Commission governs crypto today through anti-money-laundering law: amendments effective at the start of 2025 replaced the old compliance-declaration system with mandatory registration for virtual asset service providers, backed for the first time by criminal penalties for operating unregistered, and an industry association operates under FSC guidance. The permanent architecture is now legislated. The Legislative Yuan passed the Virtual Asset Service Act on June 30, 2026: the FSC will license providers, customer assets must be segregated, stablecoin issuers need approval from both the central bank and the FSC and must hold full reserves, and unlicensed operation carries up to seven years' imprisonment. The Executive Yuan will set the effective date, after which registered providers have 12 months to apply for licences and 21 months to obtain them.
The instruments
AML registration regime for VASPs
Mandatory FSC registration for virtual asset service providers, replacing the prior declaration system, with criminal liability for unregistered operation and ongoing AML program obligations.
Virtual Asset Service Act
Replaces AML-only registration with FSC licensing, segregation and trust custody of customer assets, stablecoin issuance subject to central bank and FSC approval with full reserves, and market-conduct standards. Existing registered providers must apply within 12 months and be licensed within 21 months of the effective date.