Taiwan Implements Virtual Asset Law by June 2025

Taiwan Enhances Crypto Regulation and Market

Taiwan plans to enable banks to issue stablecoins such as USDT and USDC by June 2025, provided they obtain licensing from the Financial Supervisory Commission (FSC).

Strengthened AML Regulations

New Anti-Money Laundering (AML) regulations for Virtual Asset Service Providers (VASPs) will take effect in January 2025. VASPs are required to register and comply with stricter regulations to avoid penalties or imprisonment. These regulations aim to align crypto with the traditional financial sector and enhance customer asset protection.

FSC's Market Initiatives

The FSC will implement new registrations for virtual asset trading and separate virtual asset regulation from the Anti-Money Laundering Act. It is also collaborating on a tokenization project for real-world assets with six financial institutions.

Consideration of Bitcoin ETFs

The FSC has previously welcomed institutional investment in Bitcoin exchange-traded funds (ETFs) and will review their availability for public purchase later this year.

Conclusion

Taiwan's comprehensive crypto regulations and initiatives aim to foster a secure and reputable environment for businesses and investors. The new licensing requirements for stablecoin issuance, enhanced AML regulations, and market-strengthening measures demonstrate Taiwan's commitment to balancing innovation with responsible financial practices.