🎉 Taiwan🇹🇼: cryptocurrency law and stablecoin licensing framework approved

🎉 Taiwan🇹🇼: cryptocurrency law and stablecoin licensing framework approved

Stablecoins issued in Taiwan will require approval from the Central Bank and the Financial Supervisory Commission (FSC). In addition, issuers must maintain 100% reserve backing held in trust and undergo regular audits.

➡️ Previously, the regulatory framework focused primarily on anti-money laundering (AML) measures.

➡️ The new rules define 7 categories of virtual asset service providers (VASP), including exchanges, trading platforms, custodians and lenders. Requirements include internal controls and audits, cybersecurity systems, listing and delisting procedures, segregation of client assets and financial reporting standards.

➡️ The framework introduces penalties for price manipulation and crypto-related fraud, including prison sentences ranging from 3 to 10 years and fines of between USD 300,000 and USD 6.3 million.

➡️ Individuals involved in the management of VASPs or the issuance of stablecoins without proper licenses may face up to 7 years in prison and fines of up to 3.1 million USD.

➡️ Even crypto companies that completed their AML registration before the law takes effect or were already operating under FSC supervision will be required to obtain new licenses. They will have 12 months from the law's effective date to comply.

➡️ However, the effective date has not yet been determined. Although the bill has already passed its third reading, it still must be officially promulgated and published by the executive branch.

➡️ Once the framework becomes operational (reportedly during the second half of 2026) and a clear legal basis is established, Taiwan intends to launch a national stablecoin.

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