Taiwan's legislature passed a crypto licensing law that forces digital asset platforms to register with the Financial Supervisory Commission (FSC) before they can operate. The move closes a regulatory gap that has left the sector in legal limbo for years.
The FSC will now set and enforce the licensing standards. Platforms operating without approval face enforcement action. The law applies to exchanges, custody providers, and other services that handle customer crypto assets.
Taiwan joins a growing list of jurisdictions moving from hands-off tolerance to formal regulation. The framework gives the FSC explicit power to supervise the sector, approve new entrants, and set operational guardrails.
The licensing requirement is the law's core mechanism. Platforms must demonstrate compliance with FSC standards before launching or continuing operations. The Commission gains authority to inspect, audit, and revoke licenses for violations.
Previously, Taiwan's crypto sector operated in a gray zone. No explicit permission existed, but no blanket ban either. The new law eliminates that ambiguity. Incumbent platforms will need to apply for licenses. The FSC has discretion over approval timelines and conditions.
Companies with existing user bases face pressure to formalize quickly. Delays in obtaining a license could signal to users and counterparties that a platform's status is uncertain. The FSC's licensing decisions will reshape which players operate legally in Taiwan.