Is crypto legal in Taiwan? Rules & regulation (2026)
Crypto is developing in Taiwan.
Taiwan is transitioning from a patchwork of AML-registration, sectoral securities-law and tax rules to a dedicated crypto regime. The Legislative Yuan passed the Virtual Asset Service Act on 30 June 2026, giving the FSC sole licensing authority over seven categories of VASP and imposing dual-approval and 100% reserve requirements on stablecoin issuers, but the Act's commencement date is still to be set by the Executive Yuan, and existing platforms have a 12-month application / 21-month full-approval transition window.
Legal framework
Virtual Asset Service Act (passed by Legislative Yuan 30 June 2026, commencement to be set by Executive Yuan) supplementing Money Laundering Control Act (2024 amendment) and existing FSC/Securities and Exchange Act rules for security tokens; overseen by the Financial Supervisory Commission (FSC), with the Central Bank co-approving stablecoin issuers and the Ministry of Finance handling tax
Status by sub-area
Stablecoins
ProposedThe Virtual Asset Service Act (passed 30 June 2026, effective date pending) imposes dual FSC + Central Bank approval, 100% reserves held in trust at domestic banks, no yield to holders, mandatory audits and bankruptcy-remote treatment; until commencement, there is no dedicated stablecoin regime in force.
Still pending: Virtual Asset Service Act (passed 30 June 2026) effective date pending
Exchanges / VASP
PartialSince a 2024 amendment to the Money Laundering Control Act, VASPs (including exchanges) must complete AML registration with the FSC before operating; the Virtual Asset Service Act adds a full licensing regime with FSC oversight for seven VASP categories, but it is not yet in force and current registrants have a 12-month grace period to apply and 21 months to obtain the licence.
Still pending: Licensing regime under Virtual Asset Service Act not yet in force
Token Offerings
In forceSince a 2019 FSC ruling, tokens with securities characteristics are treated as 'securities' under the Securities and Exchange Act; STOs are permitted only via FSC-licensed dealers on TPEX, largely restricted to professional investors, with an NT$30 million issuance threshold triggering full sandbox/prospectus review.
Custody
PartialThe FSC already applies segregation and cold-wallet standards to AML-registered VASPs, and the new Act codifies safeguarding, segregation, outsourcing and civil-liability rules; comprehensive statutory custody rules are not yet in force.
Still pending: Comprehensive statutory custody rules not yet in force under Virtual Asset Service Act
DeFi
NoneTaiwan has no dedicated DeFi regime; the government has not issued an official position, and DeFi activities are assessed case-by-case against existing banking, securities, futures, trust and AML laws, with the new VASP Act primarily targeting centralised intermediaries.
Tax
In forceThere is no standalone crypto tax law, but the Ministry of Finance treats crypto as a 'virtual commodity' and taxes gains as property-transaction income under the Income Tax Act when converted to fiat; overseas-sourced crypto income falls under the Alternative Minimum Tax with a NT$1 million per-person annual reporting threshold.
Key points: crypto & digital assets in Taiwan
Dedicated VASP Act passed but not yet effective
The Legislative Yuan cleared the Virtual Asset Service Act on 30 June 2026 in a third reading; the FSC has said the effective date will be set separately by the Executive Yuan, so the current legal baseline remains AML registration under the Money Laundering Control Act.
FSC becomes sole competent authority for VASPs
Seven categories of VASP (exchange, trading platform, transfer, custody, underwriting, lending and a catch-all) must obtain an FSC licence; unauthorised operation is punishable by up to 7 years' imprisonment and NT$100 million in fines, with fraud/market-manipulation offences carrying 3–10 years and up to NT$200 million.
Stablecoins require dual approval and 100% trust-held reserves
Stablecoin issuers need consent from both the Central Bank of the ROC (Taiwan) and the FSC, must hold 100% reserves at domestic financial institutions in trust, cannot pay yield, must publish audits, and reserve assets are ring-fenced from any bankruptcy estate.
Security tokens regulated under Securities and Exchange Act since 2019
A 2019 FSC ruling classifies STO tokens as 'securities' under the SEA; only Taiwan-incorporated non-listed issuers can offer dividend/debt tokens, issuances up to NT$30 million use FSC-licensed dealer platforms via TPEX, and natural-person subscriptions are capped at NT$300,000, largely restricted to professional investors.
Custody: segregation and 70/80% cold-wallet floor
Under existing FSC guidance and the new Act, VASPs must segregate customer crypto and fiat from proprietary assets; custodians meeting information-security standards must hold at least 70% of customer crypto in cold wallets (80% if they do not), with annual CPA reports and bank/trust arrangements for fiat.
Tax: crypto treated as virtual commodity, gains taxable on fiat conversion
The Ministry of Finance treats crypto as a 'virtual commodity'; profits are 'property transaction income' under Article 14(1)(7) of the Income Tax Act with no securities-tax exemption, taxation is triggered on conversion to fiat, and foreign-sourced income (e.g., withdrawals from offshore exchanges) falls under the Alternative Minimum Tax with a NT$1 million reporting threshold.
Timeline of decisions
- Decision
- Law
- Law · officialExecutive Yuan Approves Virtual Asset Services Act; Bill Forwarded to Legislature
Taiwan's Cabinet approved the FSC-drafted Virtual Asset Services Act and transmitted it to the Legislative Yuan for deliberation, the country's first dedicated crypto statute, covering VASP licensing, capital requirements, asset segregation, stablecoin issuance approval, and criminal penalties of up to seven years for unlicensed stablecoin issuers.
Executive Yuan, R.O.C. — Press Release
- Law · officialFSC Publishes Draft Virtual Asset Services Act for Public Consultation
The FSC released the draft Virtual Asset Services Act proposing a comprehensive licensing regime for VASPs and stablecoin issuers modelled on the EU, UK, Japan, and Hong Kong frameworks; the public comment period closed 24 May 2025 and the draft was submitted to the Executive Yuan in June 2025.
Financial Supervisory Commission (FSC)
- EnforcementMandatory VASP AML Registration Regime Takes Full Effect
The 30 November 2024 deadline under the July 2024 Money Laundering Control Act amendment required all VASPs to complete FSC AML registration before providing services; non-compliance carries up to two years imprisonment and NT$5 million in fines. Only 23 exchanges had registered by the deadline.
Lee Tsai & Partners (citing FSC)
- Law · officialMoney Laundering Control Act Amended: Pre-Operation FSC Registration Mandatory for All VASPs
Taiwan enacted amendments to the Money Laundering Control Act requiring every VASP to obtain FSC AML registration before commencing operations and compelling offshore VASPs to establish a local legal presence in Taiwan, a major step from voluntary guidelines to enforceable obligations.
Executive Yuan, R.O.C. — Cabinet Passes Draft Amendments to Money Laundering Control Act
- GuidanceTaiwan VASP Industry Association Established with FSC Backing
The Taiwan Virtual Asset Service Providers Association was formally established with FSC support to issue binding self-regulatory codes; by January 2025 it had promulgated seven codes covering AML/CFT, virtual asset listing/delisting, customer protection, cybersecurity, anti-fraud reporting, and asset segregation.
Lee Tsai & Partners (citing FSC)
- Law · officialAML/CTF Regulations for Virtual Asset Platforms Take Effect, First Dedicated Crypto Rules
Taiwan's first dedicated crypto AML/CTF regulations entered into force, requiring VASP operators to implement KYC procedures, maintain transaction records, and file large-transaction and suspicious-transaction reports with the Ministry of Justice Investigation Bureau within two business days of approval.
FSC Laws and Regulations Retrieving System
- GuidanceFSC Issues ICO-Era Warning: Crypto Remains 'Virtual Commodity'; Securities Rules Apply Case-by-Case
Amid the 2017 ICO boom, the FSC reissued its virtual-commodity classification and warned the public of speculative risks, while signalling that tokens meeting securities criteria would be regulated under the Securities and Exchange Act, laying the conceptual groundwork for the 2019 STO framework.
Library of Congress — Regulatory Approaches to Cryptoassets: Taiwan
Sources
- coindesk.com/policy/2026/07/01/taiwan-s-sweeping-crypto-law-raises-the-bar-with-li
- blockhead.co/2026/07/01/taiwans-legislative-yuan-clears-first-dedicated-crypto-sta
- lexology.com/library/detail.aspx?g=8ae61a84-4649-460a-915d-d0c1c5b0f9a4
- lexology.com/library/detail.aspx?g=69243e76-39ad-46de-88ec-facdde3e58a2
- fsc.gov.tw/en/home.jsp?id=54&parentpath=0,2&mcustomize=multimessage_view.jsp&dat
- globallegalinsights.com/practice-areas/blockchain-cryptocurrency-laws-and-regulations/taiwan/
- cryptoslate.com/crypto-laws/taiwan-virtual-asset-service-act/
- finance.biggo.com/news/34e3ee03-f3f1-423c-818f-f72658c1b9e0
- leetsai.com/the-financial-supervisory-commission-of-taiwan-requires-virtual-asset
- taipeitimes.com/News/front/archives/2026/07/01/2003860029
- practiceguides.chambers.com/practice-guides/blockchain-2025/taiwan
- bingx.com/en/learn/article/crypto-tax-filing-in-taiwan
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