Taiwan passes bill to regulate crypto firms and stablecoins

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Taiwan's parliament has passed a landmark cryptocurrency bill that establishes the country's first legal framework for the digital asset industry, marking a major step toward formal regulation of the sector.

The legislation requires cryptocurrency exchanges operating in Taiwan to meet registration, reporting, and consumer protection requirements, while stablecoin issuers must comply with rules covering reserve assets and transparency.

The law regulates all cryptocurrency businesses, including licensing requirements for virtual asset service providers (VASPs) and stablecoin issuers, as well as penalties for fraud and market manipulation.

The move marks Taiwan's shift from a largely unregulated crypto market to a more structured regulatory environment.

The law imposes strict penalties for violations. Operating a virtual asset service provider (VASP) or issuing stablecoins without authorization is punishable by up to seven years in prison and fines of up to NT$100M ($3.14M). Fraud or market manipulation involving virtual asset prices, supply, or demand carries prison terms of three to 10 years and fines ranging from NT$10M to NT$200M.

The bill now awaits the president's signature before becoming law. The regulators are expected to issue detailed implementation rules and a compliance timeline in the coming months.

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