Virtual Assets Special Law Expected to Launch Next Year at the Earliest
In September 2023, Taiwan’s Financial Supervisory Commission (FSC) released the “Cryptocurrency Regulation Guidelines” to strengthen the protection of domestic virtual asset platforms for customers. Yesterday (3rd), the Finance Committee convened a public hearing chaired by Commissioner Ming-tsai Lo, inviting representatives from the FSC, virtual currency operators, and relevant experts and scholars to discuss the upcoming Virtual Assets Special Law based on research findings from September and future policy directions.
Currently, the Taiwanese government adheres to a step-by-step approach, focusing on enhancing industry self-regulation and utilizing the Anti-Money Laundering Act as a foundation. Drawing from regulations in the EU, Japan, South Korea, and other countries, the FSC issued the “Guidelines for Managing Virtual Asset Platforms and Trading Operations (VASP).” Deputy Director Ching-ping Kao stated that an outsourced research report is expected to be completed by the end of this September, incorporating the latest international legislative experiences to establish a comprehensive regulatory framework.
Image /
Office of Ming-tsai Lo
Ming-tsai Lo mentioned that a draft of the special law is expected by year-end, although progress has been relatively slow with only six dedicated researchers currently. The exact timeline for the law’s implementation next year remains uncertain. He also disclosed ongoing internal discussions regarding the potential establishment of a Virtual Assets Management Agency.
During his inaugural parliamentary questioning on the 22nd, the newly appointed FSC Chair, Chin-lung Peng, indicated that the FSC has outsourced research related to the special law and expects to decide by the end of this year whether to enact it. Should the law proceed, a legislative framework could be proposed as early as the first half of next year.
Peng emphasized that while Taiwan currently lacks specific cryptocurrency legislation, the Taiwanese Crypto VASP Business Association will be established by the end of June, setting its own self-regulatory standards.
Image /
Office of Ming-tsai Lo
Further Reading:
Preparatory Committee for Taiwan’s “Crypto Association” Established! XREX’s Hui-tsung Hsiao Appointed Chairman, First Conference Expected by June
Industry Perspectives:
Chen Ming-hui, COO of MaiCoin, expressed strong support for the current “gradual approach” to legislative efforts. He suggested that before introducing specific laws, a specialized agency should be established for graded management to clarify business categories and scopes, thereby reducing communication costs and enabling professional management under complementary measures.
Additionally, Chen recommended that the special law encompass derivative financial products such as ETFs, options, and perpetual contracts, with clear levels defined for business scale, capital requirements, and shareholder structures. This approach would allow businesses to sustainably operate and grow within a compliant environment.
Hui-tsung Hsiao, Co-founder and Chief Revenue Officer of XREX Exchange, pointed out that Taiwan’s current regulatory focus in the crypto industry is not just about combating fraud; it urgently needs to establish an industry-wide defense platform against money laundering and fraud, fostering a complete upstream and downstream industry chain.
Hsiao also added that the Taiwan Crypto Association will formally establish on June 13, followed by discussions and confirmation of self-regulatory standards involving multiple industry stakeholders and chief advisors.
