Code & Chain · Signal Desk

Taiwan passes Virtual Asset Service Act, stablecoins require dual approval

Original sourcealtcoinreporter.com

Summary

Taiwan's Legislative Yuan passes the Virtual Asset Service Act; VASPs must obtain FSC permission, stablecoin issuance requires dual approval from the FSC and central bank, 100% reserves, independent trust custody, violators face up to seven years in prison.

Key points

  • Understand the latest development in Asian stablecoin regulation; Taiwan joins Japan and Singapore as a strictly regulated market.
  • Taiwan's tighter regulation will affect regional stablecoin circulation and compliance costs, possibly triggering an Asian regulatory race.
  • For operators: must apply for dual approval, significantly increasing compliance costs; for users: stablecoin choices limited but protections improved.
  • Similar to Japan's 2020 stablecoin bill, but Taiwan's requirement for central bank approval is stricter.

Editorial note

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