Taiwan's Financial Supervisory Commission has released a draft of the Virtual Asset Service Act, aiming to regulate the virtual asset sector and protect investors.
Key Points of the Draft
The draft outlines licensing requirements for Virtual Asset Service Providers, including organizational structure, capital, and personnel qualifications. It also authorizes banks to issue stablecoins pegged to the New Taiwan Dollar, given approval and compliance with set criteria. The FSC is empowered to conduct inspections and enforce compliance.
Discussion and Implementation Process
The FSC has initiated a 60-day public consultation period for stakeholder feedback on the draft, with plans to submit the finalized law to the Executive Yuan by June 30.
Historical Context and Future Initiatives
These efforts underscore Taiwan's commitment to regulatory clarity for virtual assets. In October 2024, updated Anti-Money Laundering measures were introduced, making registration mandatory for VASPs.
The Virtual Asset Service Act highlights Taiwan's efforts to improve regulatory processes and ensure safety in the crypto sector.
