Taiwan's virtual asset regulation will enter a new stage. The Financial Supervisory Commission recently published the draft "Virtual Asset Services Act" and plans to submit it to the Executive Yuan for review as early as the end of June. To gather public and industry opinions, the FSC plans to hold over 22 public hearings. The new regulations not only concern market order and investor rights but also become a critical turning point for local businesses' development and international competitiveness.
Table of Contents
ToggleDraft Enters Final Stage, FSC Plans 22 Public Hearings
FSC Chairman Peng Jin-long stated in an interview on April 30 that the draft "Virtual Asset Services Act" is entering its final revision stage and is expected to be submitted to the Executive Yuan by the end of June. To fully gather suggestions from all sectors of society, the FSC will hold at least 22 public hearings, hoping to create a legal framework that balances innovation and risk management.
Industry Hopes for Tiered Management, More Diverse Virtual Asset Products
Most industry players suggested during the public hearings that the regulatory system should adopt a "gradual" and "tiered management" approach, with different levels of supervision intensity based on business scale and risk. They also urged the government to appropriately allow domestic businesses to operate more diverse products like ETFs and perpetual contracts to prevent overseas platforms from gaining a competitive advantage.
VASP Association Proposes Three Recommendations: Tiered Supervision, Extended Transition Period, Learning from Hong Kong Experience
The Virtual Asset Service Providers (VASP) Association suggested that the "Virtual Asset Services Act" could reference the "Electronic Payment Institution Management Regulations", differentiating supervision intensity based on asset custody amount and business risk. For example, implementing a licensing system for large businesses while maintaining a registration system for small, low-risk entities. They also recommended extending the current six-month transition period to one year, following Hong Kong's counter-terrorism financing experience, to provide businesses with more adjustment time.
HOYA BIT Calls for Clear Listing Standards, Stablecoin Audit System Essential
HOYA BIT founder Peng Yun-xian stated that the government should establish a clear, progressive virtual asset listing and delisting review standard and process to help stabilize the market and enhance transparency. She suggested setting up an early warning mechanism and buffer period to reduce market volatility caused by asset delisting. Regarding stablecoins, Peng emphasized that issuers should be required to maintain sufficient reserves and regularly publish audit reports to guarantee asset convertibility and safety.
MaiCoin Suggests Incorporating More Financial Innovation Products
The local large-scale virtual asset platform MaiCoin Group suggests that future regulations should include more potential virtual asset businesses, such as cryptocurrency ETFs, perpetual contracts, and binary options, to encourage innovation and prevent foreign platforms from monopolizing emerging business opportunities, thereby narrowing the competitive gap.
Law Professor Yang Yueping: Draft Has Flexible Prototype, Details Should Be Left to Subsidiary Regulations
Regarding the draft content, National Taiwan University Law School Associate Professor Yang Yueping pointed out that while the current draft does not list specific implementation details, it already has a prototype of a hierarchical management framework. If the main law provisions are too detailed, future amendments may face difficulties, so detailed regulations should be supplemented and adjusted through future subsidiary laws, regulatory orders, or administrative rules.
Lending Business First Included in Specialized Law, Rare International System Breakthrough
Yang Yueping further explained that this draft is the first to formally include "virtual asset lending business" in regulations, which is an important breakthrough compared to the current registration system. The model involves investors lending stablecoins to businesses, with businesses providing interest returns. Such businesses are still rare in international law, and if Taiwan can lead in regulation, it will help improve market trust and regulatory competitiveness.
New Law Earliest Two Years Away, Room for Reform Remains
Although the draft is about to be completed and submitted for review, the academic community generally estimates that even if legislation is completed this year, formal implementation will take at least two to three years. This period will be a golden opportunity for the government and industry to work together to adjust, experiment, and improve supervision models. Whether future regulations can balance protecting investor rights while leaving enough space for industry innovation will be key to measuring the new law's success.
Risk Warning
Cryptocurrency investment carries high risk, and its price may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
