In-depth Analysis: How Are Taiwan and Southeast Asia Regulating the Cryptocurrency Industry?
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In-depth Analysis: How Are Taiwan and Southeast Asia Regulating the Cryptocurrency Industry?
Overview of the regulatory status of the cryptocurrency industry in Taiwan, Thailand, Vietnam, Indonesia, Malaysia, Singapore, and the Philippines.
Navigating Web3 tides with focused insightsCompiled by: Weilin
As one of the key engines of global economic growth, Southeast Asia is increasingly showcasing its potential for blockchain technology adoption. Recently, None Group's Pioneer Research Team released a report titled "Key Blockchain Trends" covering the cryptocurrency industries in Taiwan and Southeast Asia. PANews has excerpted the regulatory sections of this report to present the current state of cryptocurrency regulation in Taiwan, Thailand, Vietnam, Indonesia, Malaysia, Singapore, and the Philippines.
Clarifying regulatory policies is the first step for any entity looking to enter a new market. PANews has selected the regulatory content from this report to outline the current regulatory landscape for the cryptocurrency industry in Taiwan, Thailand, Vietnam, Indonesia, Malaysia, Singapore, and the Philippines.
Overall, as technology continues to evolve and market sentiment fluctuates, blockchain regulations are frequently subject to dynamic adjustments. Especially after major incidents, regulators across jurisdictions often face incomplete frameworks and thus accelerate the formulation and enforcement of new rules. While such actions may tighten oversight in the short term, they do not necessarily hinder innovation over the long term. For example, following the ICO boom in 2017, countries like Thailand and Singapore swiftly introduced corresponding regulations to protect local investors.
Taiwan Blockchain Regulatory Trends
With the development of the blockchain industry, various application scenarios have emerged—from financial services and supply chain management to digital asset trading and smart contracts. As the sector grows rapidly, compliance and regulatory issues have become more prominent amid rising fraud cases and exchange failures.
In Taiwan, the government has gradually taken steps over recent years to regulate crypto assets, initiating discussions with relevant agencies on the best approach to oversee virtual asset platforms. Key developments trace back to June 2021, when the Executive Yuan designated the Financial Supervisory Commission (FSC) as the anti-money laundering (AML) supervisory authority for Virtual Currency Platforms and Trading Service Providers under the Anti-Money Laundering Act. The FSC subsequently issued the “Regulations on Anti-Money Laundering and Countering the Financing of Terrorism for Virtual Currency Platforms and Trading Service Providers (AML&CFT).” By the end of December 2023, 25 companies had passed the review process.
Starting in January 2023, the Legislative Yuan proposed that the Executive Yuan study a comprehensive regulatory framework for virtual assets, incorporating it into the central government budget. In late March of the same year, the Executive Yuan confirmed that the FSC would be responsible for regulating the virtual asset sector, aligning its approach with international standards seen in jurisdictions such as the EU, Singapore, Japan, South Korea, and Israel, aiming to progressively strengthen customer protection on virtual asset platforms. Given the unique nature of virtual or digital assets—encompassing diverse applications such as virtual currencies, NFTs, payments, and stablecoins—regulation remains complex. Authorities are still actively discussing which agencies should oversee different asset types. In September 2023, the FSC released the long-anticipated “Guidelines for Virtual Asset Service Providers (VASP),” emphasizing enhanced customer protections around transparency, asset custody, and internal controls.
The VASP guidelines include:
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Strengthening management of virtual asset issuance
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Establishing listing and delisting review mechanisms for virtual assets
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Ensuring separation between platform and customer assets
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Enhancing fairness and transparency in trading
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Improving contract terms, marketing practices, and complaint handling
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Establishing operational systems, information security, and hot/cold wallet management protocols
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Mandatory public disclosure of information
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Strengthening internal controls and audit mechanisms
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Extending AML supervision to individual coin dealers equivalent to legal entities
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Prohibiting foreign-based exchanges from conducting unauthorized solicitation in Taiwan
Thailand Blockchain Regulatory Trends
In 2018, the Thai government enacted the Digital Asset Business Emergency Decree B.E. 2561, establishing a comprehensive regulatory framework for the issuance, trading, and operation of virtual assets. Key points include:
Definition of virtual assets: Thailand defines virtual assets as digital assets, encompassing cryptocurrencies and digital tokens, regardless of whether they possess securities-like characteristics.
Regulatory requirements: Virtual asset service providers, including exchanges, must be recommended by the Securities and Exchange Commission of Thailand (SEC) and approved by the Ministry of Finance. The minimum capital requirement is 50 million THB; however, if the platform does not hold customer assets, the threshold is reduced to 10 million THB.
Customer asset protection: Providers are legally required to segregate customer assets and must not use them for other purposes. Customers retain ownership of their assets held in accounts.
Regulatory details: Thailand applies securities-style regulation, mandating suitability assessments, best execution practices, and prohibiting self-trading by exchanges to prevent conflicts of interest and protect investor rights.
Thailand’s regulatory framework emphasizes investor protection and closely resembles securities regulation, differing significantly from payment-focused models like those in New York State or Japan.
Notably, the SEC recently announced new restrictions banning exchanges from offering the following services:
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Using deposited digital assets for lending, investment, or staking to generate returns for users.
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Offering returns based on user deposits using corporate marketing budgets.
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Providing such services or advertisements through third parties.
Additionally, to mitigate systemic financial risks, the SEC prohibits citizens from using virtual assets as payment, and exchanges must restrict fund transfer capabilities.
Vietnam Blockchain Regulatory Trends
Vietnam’s regulatory stance on virtual assets remains unclear, though several key positions exist:
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The State Bank of Vietnam (SBV) has stated that virtual assets are not legal tender and cannot be used as a payment method.
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The State Securities Commission of Vietnam (SSCV) prohibits listed companies, securities firms, fund managers, and investment funds from engaging in any issuance, trading, or brokerage activities related to virtual assets, and mandates strict compliance with AML regulations.
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The Ministry of Industry and Trade (MOIT) states that Bitcoin is not recognized as a commodity or service under Vietnamese law and warns the public against virtual asset activities.
Beyond these points, Vietnam currently lacks comprehensive virtual asset regulations. While the government restricts their use as payment instruments, there are no laws governing investment or trading. Moreover, overseas virtual asset firms face minimal restrictions—major centralized exchanges like Binance continue to operate actively in Vietnam.
Notably, after recognizing the high level of local trading activity, Prime Minister Phạm Minh Chính instructed the SBV and relevant agencies in 2020 to study policy options for virtual asset management. With government support, the Vietnam Blockchain Association was formally established in 2022 to help build a stronger regulatory framework. However, as of the end of 2023, no formal recommendations or legislation have been released.
Indonesia Blockchain Regulatory Trends
Indonesia’s virtual asset market is growing rapidly, and the government is actively advancing regulatory measures. Crypto asset trading falls under the jurisdiction of the Commodity Futures Trading Regulatory Agency (Bappebti/CoFTRA), which classifies virtual assets as commodities. The regulatory framework is primarily governed by CoFTRA Regulation No. 13 of 2022 and No. 8 of 2021. Key developments include:
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National Exchange: In July 2023, Indonesia officially launched a national virtual asset futures exchange to enhance legal certainty and protect users.
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Expanded Tradable Assets: In June 2023, the government expanded the list of tradable virtual assets to 501, promoting broader adoption.
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Regulatory Transition: Indonesia is reforming its regulatory structure, transferring oversight from Bappebti to the Financial Services Authority (OJK) over a two-year transition period. Currently treated as commodities, virtual assets are expected to be reclassified as securities post-transition.
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Scope of Regulation: Under Bappebti rules, regulated businesses include futures exchanges, crypto clearing houses, custodians, and virtual asset exchanges. Initial Coin Offerings (ICOs) remain unregulated.
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Licensing Requirements: Different business types require specific licenses, with conditions on paid-up capital, organizational structure, technical infrastructure, and compliance with AML/CFT regulations.
Malaysia Blockchain Regulatory Trends
Virtual assets are legal in Malaysia, and the government has implemented regulations to ensure market stability and transparency.
However, the Securities Commission Malaysia (SCM) continues to monitor and assess the evolving landscape to protect investors. Key aspects of Malaysia’s regulatory approach include:
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Regulatory Framework: In 2019, Malaysia issued the Capital Markets and Services (Definition of Securities) (Digital Currencies and Digital Tokens) Directive, bringing all virtual assets under securities law, regardless of whether they are deemed securities.
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Exchange Regulation: Virtual asset exchanges are known as Digital Asset Exchanges (DAX) and are regulated under Chapter 15 of the Recognized Market Guidelines. Operators must obtain SCM approval and await authorization for specific assets before trading. The minimum capital requirement is 5 million Malaysian ringgit.
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User Protection: Similar to Japan, Malaysia distinguishes between fiat and virtual asset custody. Fiat funds must be held in trust accounts at qualified financial institutions, while virtual assets must be stored using secure media.
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Market Integrity Obligations: Comprehensive rules cover real-time market surveillance, responses to volatility, and procedures for handling erroneous trades and system failures.
Beyond exchanges, the SCM also requires licenses for IEO operators, digital asset custodians (DAC), and funds. Currently, six centralized exchanges (DAX) are recognized by the SCM, allowing users to trade approved assets such as BTC, ETH, and AVAX. DAXs are also required to disclose market structure and order types. In summary, Malaysia is actively developing a comprehensive legal framework to balance investor protection with industry growth.
Singapore Blockchain Regulatory Trends
Singapore is widely regarded as one of the most well-regulated and crypto-friendly jurisdictions, making its approach a model for others. It adopts a "chain-first, token-second" philosophy—actively encouraging blockchain innovation while maintaining conservative policies toward speculative crypto activities. Following the collapse of several major lending platforms and the FTX exchange in 2022, the government consulted stakeholders and introduced enhanced investor protection measures in 2023. Overall, Singapore’s stable, transparent, and clear regulatory environment continues to attract global firms. Key elements of its regulatory framework include:
Regulatory Approach: The Singapore government does not recognize virtual assets as legal tender but allows their use as alternative payment methods. Digital Payment Token (DPT) service providers are regulated under the Payment Services Act.
Regulated Activities: Under local law, a DPT service provider includes any entity that:
a. Facilitates the exchange of digital payment tokens, i.e., operates a DPT exchange
b. Buys or sells DPTs for money or other DPTs (same or different type)
c. Transfers DPTs on behalf of customers
d. Provides custodial wallets for customers
e. Acts as a broker facilitating DPT transactions for clients
License Types: Licenses are categorized based on business scope: Money-Changing License, Standard Payment Institution License, and Major Payment Institution License. The Monetary Authority of Singapore (MAS) evaluates applicants’ financial soundness, security measures, and compliance procedures.
Stablecoin Regulation: In August 2023, MAS issued rules requiring stablecoin reserves to consist of low-risk, highly liquid assets, with reserve value always equal to or exceeding the circulating supply.
MAS clarifies regulatory expectations through administrative notices and guidance—for example, requiring firms by end-2023 to hold customer assets in statutory trusts and separate customer funds from corporate funds, and urging operators to discourage retail speculative trading.
Philippines Blockchain Regulatory Trends
The Bangko Sentral ng Pilipinas (BSP) is actively shaping the country’s monetary landscape to embrace the digital economy. While virtual assets are not legal tender in the Philippines, the BSP recognized their legitimacy in February 2017 through Circulars 944 and 942.
Regulatory Framework: In 2021, the BSP introduced the “Guidelines on Virtual Asset Service Providers (VASP),” establishing a comprehensive regulatory regime for virtual asset trading.
Licensing: VASPs must obtain prior BSP approval and comply with robust KYC and AML requirements, including collecting customer identification data and monitoring transactions for suspicious activity. Additional licenses are required for ancillary services such as e-money issuance (EMI) and remittance (RTC).
Unique KYC Environment: The Philippines lacks a unified national ID system, so VASPs must be able to verify identity documents from across 82 provinces.
Audit Requirements: VASPs must publicly disclose balance sheet information each quarter, including asset holdings in hot and cold wallets.
The Philippines has a clear regulatory framework, with effective oversight of VASPs. In September 2022, the BSP suspended new VASP license applications for three years. Since late 2023, the Philippine Securities and Exchange Commission (SEC Philippines) has warned against unlicensed exchanges. Regarding Binance, the SEC has coordinated with the National Telecommunications Commission and IT authorities to block access, requested Google and Meta to stop running Binance ads targeting Filipinos, and demanded Binance exit the Philippine market within three months.
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