TechFlow News, July 1st: According to The Block, Taiwan's Legislative Yuan passed the "Virtual Asset Service Act" on a third reading on July 1. The bill has been submitted to Taiwan regional leader Lai Ching-te for signature, and the implementation date is expected to be announced within 10 days.
The core points of the bill are as follows:
- Licensing Requirements: Virtual Asset Service Providers must apply for permission from the Financial Supervisory Commission (FSC); platforms that have completed AML registration have a 12-month application period and a 21-month approval period
- Stablecoin Regulation: Issuing or managing stablecoins requires dual approval from both the Central Bank and the FSC, and maintaining sufficient reserves
- Compliance Requirements: Covering cybersecurity, segregation of customer assets, internal controls, and other aspects
- Criminal Penalties: Illegal operations punishable by up to 7 years in prison, fines up to NT$100 million (approximately US$3.14 million); crypto market manipulation punishable by up to 10 years, fines up to NT$200 million (approximately US$6.28 million)
Industry insiders pointed out that crypto enterprises previously operating in legal gray areas will no longer be able to rely on regulatory ambiguity, traditional financial institutions will also be allowed to apply for VASP licenses in the future, and existing crypto enterprises may face more intense competitive pressure.
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