The Financial Supervisory Commission (FSC) submitted the draft Virtual Asset Service Provider (VASP) Act to the Executive Yuan for review in late June 2025, and it is currently under examination. Following the Act’s passage, eight subordinate regulations will be enacted. The drafting of these regulations is already underway, and they will be finalized after extensive discussions with stakeholders. 

The VASP Act primarily governs the management of virtual asset service providers and the supervision of the issuance and circulation of stable coins. For stablecoins, the regulations reference systems in the U.S., EU, Japan, and Singapore, bringing virtual assets linked to a single or multiple fiat currencies under its management. Domestic issuance of stablecoins will require prior approval from the competent authority, while foreign issued stablecoins must also receive consent from the authority if they are to be traded on Taiwan’s VASP platforms. Issuers will be required to maintain sufficient reserve assets, undergo regular audits, properly manage reserves, and disclose relevant information. 

Furthermore, the FSC is continuing to enhance internal control requirements for VASPs and promote anti-money laundering (AML) inspections. It inspected 4 firms in 2023, 6 in 2024, and 12 in 2025. If a firm fails to implement the relevant systems, in addition to fines, it will be required to make improvements within a specified timeframe.  

At the same time, the FSC has proposed amendments to Executive Yuan for the “Fraud Crime Harm Prevention Ordinance“. The goal is to add mechanisms for cross-industry inquiries, joint defense reporting, and intelligence analysis between financial institutions and VASPs to improve the overall effectiveness of fraud prevention.   

Through these measures, Taiwan is progressively establishing a more complete regulatory framework for virtual assets, strengthening market order, and consumer protection.