Taiwan drafts 9 rules for Virtual Asset Service Act, targets Q1 2027 launch

Taiwan’s Financial Supervisory Commission said it has prepared nine subordinate regulations for the Virtual Asset Service Act and is targeting implementation in the first quarter of 2027. The bill classifies virtual asset businesses into seven categories: exchanges, trading platforms, transfers, custody, underwriting, brokerage, and lending, while requiring separate licenses for each line of business. Stablecoins issued in Taiwan would require FSC approval, a peg to fiat currency, and one-to-one reserves. Overseas stablecoins such as USDT and USDC would be classified as products and could be traded on licensed platforms. The current AML registration system would be converted into a formal licensing regime, and existing operators would be given a grace period of up to 21 months. Operating without a license could result in up to seven years in prison and a fine of NT$100 million ($132 million).