Projeto de Lei de Serviços de Ativos Virtuais de Taiwan aprovado na comissão do parlamento, avançando rapidamente para a terceira leitura, com entrada em vigor prevista para o próximo ano

Taiwan's first "Virtual Asset Service Law" was completed on June 3rd in the Legislative Yuan's Finance Committee, after a line-by-line review, reaching cross-party consensus without the need for inter-party negotiations, 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 Chairman 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 also operate VASP, stablecoin issuance requires approval from the FSC 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, with the existing 8 operators having an 18-month transition period for licensing renewal

Three years ago, the collapse of FTX caused losses of about 60 billion TWD to over 300,000 investors in Taiwan, which spurred the legislative momentum for this special law. On June 3rd, the Legislative Yuan's Finance Committee, chaired by Li Yanshou, completed a line-by-line review of all 56 articles of the "Virtual Asset Service Law." Cross-party members including Kuomintang's Lai Shibao and Ge Rujun, Democratic Progressive Party's Zhong Jiabin and Lin Chuyin, as well as members from the Taiwan People's Party participated in the discussions. Ultimately, all articles were agreed upon and passed without the need for inter-party negotiations.

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

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

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

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 permission, without establishing subsidiaries, applying directly with existing banking licenses for VASP qualification.

Legislator Ge Rujun, during review, demanded that FSC complete the draft management measures for virtual asset derivatives 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 reviews, this review process will be explicitly defined in subordinate laws, with a 15-day principle.

Regarding stablecoins, Articles 34 to 36 stipulate that issuance must be approved by FSC and coordinated with the Central Bank. Issuers must maintain equivalent reserves, keep assets segregated, conduct regular audits, and are prohibited from paying interest to holders. For foreign 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. Li Yanshou clearly stated the goal of completing the third reading within this session. FSC Chairman Peng Jinlong previously pointed out that even after the third reading, at least six months are needed to complete the nine subordinate laws (eight VASP supervision laws and one 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 of enactment, 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, Tuohuang, 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 has launched the TWEX exchange through Fusheng Digital, and at least four financial holdings are actively negotiating VASP acquisitions.

Legislator Ge Rujun emphasizes that FSC needs to promote the establishment of a "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 existing 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 even after the third reading, at least six months are needed 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 licenses.

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

Eight VASP companies have completed anti-money laundering registration, including MaiCoin, BitoGroup, XREX, He Ya, Fusheng, Cross Chain, Tuohuang, Zhongliang, significantly reduced from about 26 before the regulation was implemented.