Unpacking Taiwan's Virtual Asset Service Act: What Crypto and Stablecoin Issuers Need to Know

Key takeaways

• Taiwan's Legislative Yuan passed the Virtual Asset Service Act (虛擬資產服務法) at the third reading on June 30, 2026 — the island's first dedicated statute for virtual asset service providers (VASPs).
• The Act is not yet in force. The FSC has said the Act and its nine subordinate regulations will take effect together, in the first quarter of 2027 at the earliest.
• Supervision moves from AML registration to permission-based licensing across seven VASP categories, extending requirements to include prudential, custody, cybersecurity, and market-conduct obligations.
• Stablecoin issuance requires both central bank agreement and FSC permission, with full reserves held in trust, redemption at face value, and a prohibition on paying interest or yield.
• Existing AML-registered firms get 12 months to apply and 21 months to be licensed, but neither clock starts until the Executive Yuan sets the commencement date.
• Two things are already moving ahead of the Act going live: draft Travel Rule amendments out for consultation until September 14, 2026, and a fraud caseload that gives the new market-conduct provisions their political weight.

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On June 30, 2026, Taiwan's Legislative Yuan passed the Virtual Asset Service Act (虛擬資產服務法) at the third reading, giving the island its first dedicated statute for virtual asset service providers (VASPs). In the Financial Supervisory Commission's own framing, the Act lifts supervision of VASPs from anti-money laundering (AML) alone to comprehensive oversight of sound operation and market order.