Rancangan Undang-Undang Layanan Aset Virtual Taiwan disetujui oleh Komite DPR, dipercepat melalui proses bacaan kedua dan ketiga, dan akan mulai berlaku paling cepat tahun depan

Taiwan's first "Virtual Asset Service Law" was completed with line-by-line review by the Legislative Yuan Finance Committee on June 3, gaining cross-party consensus without the need for negotiations between the ruling and opposition parties, and will then be sent directly to the plenary session. The bill covers aspects such as VASP licensing, stablecoin issuance, customer asset segregation, and anti-fraud measures. Previously, Financial Supervisory Commission Chair Peng Jinlong stated that after the third reading, at least six months are needed to complete the formulation of nine subordinate laws, with full implementation expected in the first half of 2027.
（Background summary: Taiwan Stock Exchange issued two major guidelines: "Stablecoin Trading Accounting Treatment" and "Internal Control System for Cryptocurrency Holdings"）
（Additional background: HzBit Hong Zhu Digital announced "immediate cessation of operations"! Taiwan VASP operators remaining: 8）

Key Highlights

• Taiwan's first "Virtual Asset Service Law" with 56 articles passed committee review, cross-party consensus achieved without negotiation
• Financial institutions can concurrently operate VASP, stablecoin issuance requires FSC approval and consultation with the central bank, legislators request FSC to develop regulations for derivatives
• After the third reading, at least 6 months are needed to complete 9 subordinate laws, existing 8 operators have a 18-month transition period for licensing renewal

Three years ago, the collapse of FTX caused over 300,000 investors in Taiwan to lose about 60 billion TWD, which spurred the legislative momentum for this special law. On June 3, the Legislative Yuan Finance Committee, chaired by Lee Yen-hsiu, completed the line-by-line review of all 56 articles of the "Virtual Asset Service Law." Cross-party members including Kuomintang's Lai Shih-bao and Ko Ru-chun, Democratic Progressive Party's Chung Chia-pin and Lin Chu-yin, as well as members from the Taiwan People's Party participated in discussions. Ultimately, all provisions were agreed upon and passed without the need for ruling-opposition negotiations.

The Executive Yuan formally submitted the draft on April 2 this year, making it a priority bill for this session, aiming to complete the third reading by approximately July.

Banks can concurrently operate VASP, derivatives to follow within a year

The bill is divided into 9 chapters, with core structure covering VASP classification and licensing (Articles 6-12), joint management standards (Articles 13-23), stablecoin regulation (Articles 34-41), and penalties (Articles 47-54, with fraud and manipulation punishable up to 10 years and 200 million TWD fine).

Article 6 defines seven major business categories: virtual asset exchange, trading platform operation, transfer services, custody, underwriting, lending, and other businesses approved by the competent authority. Article 7 opens the possibility for financial institutions to operate virtual asset businesses with permits, without establishing subsidiaries, applying directly with existing banking licenses for VASP qualification.

Legislator Ko Ru-chun, during review, requested FSC to complete the draft management measures for derivative products of virtual assets within one year after the law's implementation, with semi-annual reviews to gradually include new services such as perpetual contracts, copy trading, delegated management, and options. Regarding platform listing and delisting review, this time, the review process should be explicitly defined in subordinate laws, with a 15-day principle.

Regarding stablecoins, Articles 34-36 stipulate issuance must be approved by FSC and coordinated with the central bank, with issuers required to maintain equivalent full reserves, independent custody, and periodic audits, and are prohibited from paying interest to holders. For offshore stablecoins (such as USDT, USDC) to be traded in Taiwan, approval is also required.

Three readings aim to pass within this session, existing 8 operators must obtain licenses

After committee approval, the bill will be sent directly to the plenary for second and third readings. Lee Yen-hsiu clearly stated the goal of completing the third reading within this session. FSC Chair Peng Jinlong previously pointed out that after the third reading, at least six months are needed to complete nine subordinate laws (8 VASP supervision laws and 1 stablecoin law), with full implementation estimated in the first half of 2027.

For existing operators, the bill includes transitional provisions: applications must be submitted within 9 months after enforcement, and licenses obtained within 18 months. Currently, only 8 VASP companies in Taiwan have completed anti-money laundering registration (MaiCoin, BitoGroup, XREX, He Ya, Fusheng, Cross Chain, Tuo Huang, Zhongliang), a significant reduction from about 26 operators at the beginning of 2024.

In terms of financial institutions, Union Bank has invested approximately 27.8 million USD to acquire nearly 10% of MaiCoin Group's parent company, KGI/CITIC has invested in XREX, Fubon Financial Holding launched TWEX exchange through Fusheng Digital, and at least four financial holdings are actively negotiating VASP acquisitions.

Legislator Ko Ru-chun emphasized that FSC needs to promote the establishment of the "Financial Technology Innovation Development Fund," used to subsidize fintech R&D, cybersecurity resilience, and talent cultivation.

The bill will take at least several months to come into effect. During this vacuum period, the 8 operators need to prepare for licensing, and new entrants must consider compliance costs. Those who start early may not necessarily arrive first, but those unprepared will find it very difficult to operate.

Frequently Asked Questions

When will Taiwan's Virtual Asset Service Law officially come into effect?

The bill aims to complete the third reading within this session (by around July), but at least six months are still needed after the third reading to formulate nine subordinate laws, with full implementation expected in the first half of 2027. Existing VASP operators have an 18-month transition period to obtain official licenses.

How many legal virtual asset operators are there currently in Taiwan?

There are 8 VASP companies that have completed anti-money laundering registration, including MaiCoin, BitoGroup, XREX, He Ya, Fusheng, Cross Chain, Tuo Huang, Zhongliang, significantly reduced from about 26 before the regulation was implemented.