Taiwan’s Cryptocurrency Shake-Up: New Rules and Penalties Unveiled

Taiwan Cryptocurrency

Taiwan’s cryptocurrency sector faces a major overhaul as all crypto entities must register by September 2025, risking severe penalties for non-compliance.

At a Glance

  • Taiwan’s Financial Supervisory Commission (FSC) mandates registration for all virtual asset service providers by September 2025
  • Non-compliance could result in fines up to $155,000 and two-year prison sentences
  • New anti-money laundering rules replace the 2021 declarations starting January 2025
  • The regulations aim to align with international standards to ensure security and transparency in the crypto market

Taiwan’s Financial Regulatory Shift

Taiwan has taken a bold step in regulating its cryptocurrency market by implementing new laws that require mandatory registration of all crypto entities by September 2025. This regulatory move is led by the Financial Supervisory Commission (FSC) and marks a significant shift towards tighter control and oversight of the cryptocurrency industry in Taiwan.

This regulation comes as part of an effort to protect consumers and introduce transparency in Taiwan’s growing digital currency market. Part of this package includes enforcing stricter anti-money laundering measures, replacing the previous AML declarations enacted in 2021. From January 1, 2025, the new rules will aim to enhance transaction and asset security under a broader supervisory framework.

Penalties and Compliance Expectations

Non-compliance with the new regulations carries severe penalties, including fines up to NT$5 million ($155,900) and potential imprisonment of up to two years. Taiwan is setting clear expectations for virtual asset service providers (VASPs) to comply fully, with entities categorized into specific business areas for registration which must be completed by September 2025 following amendments made in July.

During the transitional period, companies dealing with virtual assets have a three-month window to comply with these impending regulations. The FSC is also in discussions to present a specific crypto asset law to the Executive Yuan by June next year, influenced by global regulatory frameworks from the EU, Japan, and others.

Protecting the Crypto Space

The overarching goal of these measures is to foster a more secure and reliable cryptocurrency environment in Taiwan as the country endeavors to align with international standards. This comes amid the global trend of increasing regulatory oversight, emphasizing both the facilitation of innovation and the safeguarding against illicit activities such as money laundering.

In addition to registration compliance, crypto firms must fulfill new capital and protection requirements ensuring leadership has no criminal conviction records and sufficient industry experience. Qualified leadership ensures consumer asset protection and transaction security.