Taiwan VASP Association Plans Two-Phase Travel Rule Rollout

The Financial Action Task Force (FATF) requires virtual asset service providers (VASPs) to transmit identifying information about both parties to a transfer under the Travel Rule. The Taiwan Virtual Asset Service Provider Association is working to establish a common standard aligned with the draft Virtual Asset Service Act, aiming to reduce money-laundering and regulatory risks associated with cross-platform transfers.

The association plans to implement the Travel Rule in two phases. The first phase, covering transfers between domestic platforms, is expected to be completed by October 2026. The second phase targets completion of transfers between domestic and overseas platforms in 2027. Industry participants will need to gradually establish data-exchange and identity-verification mechanisms to comply with FATF standards.