Taiwan’s parliament has conducted a first reading of a new virtual asset service provider (VASP) bill that would create a dedicated legal framework for crypto platforms and require them to obtain a permit in order to operate in the country. The draft legislation, backed by multiple lawmakers, is designed to move Taiwan beyond its current patchwork of anti-money laundering and securities rules into a comprehensive regime specifically targeting crypto service providers, including exchanges and brokerages. Until now, VASPs have mainly been governed by the Financial Supervisory Commission’s (FSC) AML registration requirements and guidance on issues such as asset segregation and consumer protection. Under the proposed bill, any platform serving Taiwanese users would need authorization from the FSC, formalizing licensing obligations and giving the regulator clearer enforcement powers over unregistered or non-compliant operators. The initiative follows earlier FSC guidelines issued in 2023 and mandatory AML registration measures in 2024, and aligns Taiwan more closely with other Asia-Pacific jurisdictions that are tightening oversight of crypto markets to address money laundering, investor protection, and systemic risk. If passed after subsequent readings and implementation, the law is expected to reshape market access for offshore exchanges, raise compliance costs for local platforms, and provide clearer regulatory expectations for firms seeking to operate legally in Taiwan’s digital asset sector.

AI-generated background, compiled from web sources — not editorial content.

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