Taiwan's legislature has passed a comprehensive crypto regulatory framework and sent it to the President for final approval, according to CoinDesk. The law establishes licensing requirements for digital asset platforms and mandates that operators maintain minimum capital reserves.
The Financial Supervisory Commission will oversee the new regime. Violations carry penalties up to 5 million TWD, creating material enforcement teeth absent from Taiwan's prior regulatory silence on crypto exchange operations.
Key provisions include mandatory licensing and capital thresholds for platforms. The law does not yet have a published enforcement date, but regulators typically allow a grace period between presidential signature and the start of on-site inspections. Operators will need to understand their specific asset custody obligations and reserve calculation methods once implementing rules emerge from the FSC.
Taiwan joins Singapore, Hong Kong, and South Korea in requiring explicit licensing for crypto trading platforms. The approach signals a pivot away from the regulatory gray space that has characterized much of Asia's crypto sector, where platforms operated with informal regulatory tolerance rather than formal approval.
The passage of this bill does not resolve lingering questions about which existing platforms will apply for licenses versus exit the market. International operators may find compliance costs prohibitive; smaller domestic players face a compliance deadline but avoid outright bans. The FSC's implementing regulations—due after presidential sign-off—will clarify capital thresholds, custody standards, and the timeline for existing platforms to come into compliance.