The Legislative Yuan approved the Virtual Asset Service Act in its third reading on June 30, 2026. The act establishes a regulatory framework for crypto firms under the oversight of the Financial Supervisory Commission.

Following approval, the act will be sent to President Lai Ching-te for promulgation. The President is expected to promulgate the act within 10 days, after which the cabinet will set an effective start date. The Financial Supervisory Commission will draft secondary regulations to implement the regime.

The legislation redefines the supervision of virtual asset service providers, moving from an anti-money-laundering registration system to broader oversight of operations and market order. The act categorizes providers into seven types: exchanges, trading platforms, transfer providers, custodians, underwriters, lenders, and a general category for other providers.

Firms seeking licenses must adhere to standards regarding personnel fitness, internal controls, audit procedures, cybersecurity measures, and the process for listing and delisting assets. Licensed firms must keep customer assets separate from company funds, disclose financial reports, and assume civil liability toward clients, including for outsourced services.

Companies currently registered for anti-money laundering compliance must apply for a license within 12 months of the act's effective date and obtain full approval within 21 months. A single three-month extension for approval may be granted. Firms that do not meet the licensing deadline will be prohibited from continuing operations.

The act introduces requirements for stablecoins. Issuing a stablecoin domestically requires consent from the central bank and permission from the Financial Supervisory Commission. Issuers must hold full reserve assets in trust, subject to regular audits and public disclosure. Penalties for running an unlicensed crypto platform or issuing stablecoins without authorization include up to seven years in prison and fines of up to NT$100 million. Cases of fraud or market manipulation carry potential prison sentences of three to 10 years and fines ranging from NT$10 million to NT$200 million.