🚨 ON-CHAIN ALERT: Taiwan Passes Virtual Asset Service Act to Regulate Crypto Market
The Legislative Yuan's passage of the Virtual Asset Service Act on June 30, 2026, marks a significant milestone in Taiwan's crypto regulation. The new law brings virtual asset service providers under the supervision of the Financial Supervisory Commission (FSC) with a mandatory licensing mechanism. Additionally, stablecoins must meet transparent reserve requirements to enhance market safety. This move brings Taiwan closer to international standards for digital asset regulation.
The Act abolishes the previous "lenient" regime, where service providers only needed to complete anti-money laundering (AML) procedures to operate without comprehensive supervision. The FSC will now oversee the entire business lifecycle, including key personnel assessment, internal control systems, cybersecurity, and listing/delisting procedures. Seven groups of entities are subject to regulation, including exchanges, trading platforms, and lenders.
Licensed organizations must separate customer assets from company capital, publish periodic financial reports, and assume civil liability for outsourcing activities. These regulations aim to eliminate the risk of embezzlement, a lesson learned from past exchange collapses due to lack of clear asset segregation. Businesses registered with AML have a 12-month transition window to apply for a license and up to 21 months to receive full approval.
#halvingjobs #CryptocurrencyRegulation #StablecoinReserve
The Legislative Yuan's passage of the Virtual Asset Service Act on June 30, 2026, marks a significant milestone in Taiwan's crypto regulation. The new law brings virtual asset service providers under the supervision of the Financial Supervisory Commission (FSC) with a mandatory licensing mechanism. Additionally, stablecoins must meet transparent reserve requirements to enhance market safety. This move brings Taiwan closer to international standards for digital asset regulation.
The Act abolishes the previous "lenient" regime, where service providers only needed to complete anti-money laundering (AML) procedures to operate without comprehensive supervision. The FSC will now oversee the entire business lifecycle, including key personnel assessment, internal control systems, cybersecurity, and listing/delisting procedures. Seven groups of entities are subject to regulation, including exchanges, trading platforms, and lenders.
Licensed organizations must separate customer assets from company capital, publish periodic financial reports, and assume civil liability for outsourcing activities. These regulations aim to eliminate the risk of embezzlement, a lesson learned from past exchange collapses due to lack of clear asset segregation. Businesses registered with AML have a 12-month transition window to apply for a license and up to 21 months to receive full approval.
#halvingjobs #CryptocurrencyRegulation #StablecoinReserve