Taiwan’s Draft Virtual Asset Law Clears Review, Expected to Pass in 2026

Taiwan’s virtual asset businesses were previously registered mainly under the Money Laundering Control Act, leaving the governance of trading platforms, custody of client assets and market manipulation without a comprehensive dedicated law. The Virtual Asset Service Act places the sector under the unified supervision of the Financial Supervisory Commission, replaces VASP registration with a licensing regime and brings stablecoins under regulation, helping strengthen investor protection and cooperation with financial institutions.

The Executive Yuan approved the draft on April 2, 2026, and the Legislative Yuan’s Finance Committee completed its initial review on June 3. The legislature formally passed all 56 articles on third reading on June 30. Stablecoins must be fully backed by reserve assets held in trust. Unlicensed operators face up to seven years in prison and a fine of up to NT$100 million. The Executive Yuan will set the effective date separately, while existing operators must apply for permission within 12 months and obtain a license within 21 months after the law takes effect.