Taiwan aims to become a key player in the global crypto economy. The island is gearing up to propose a new law in June 2025 that will integrate cryptocurrency into its national economy. New regulations will allow banks to issue stablecoins and create a trading portal for investors in a trial program supervised by The Financial Supervisory Commission (FSC). The move is part of Taiwan’s effort to build a secure and regulated environment for digital assets. The law will also impose strict anti-money laundering (AML) rules on virtual asset service providers (VASPs), requiring them to register by September 2025. Non-compliance could lead to hefty fines or even jail time. The goal is to tighten oversight of the fast-growing crypto sector and ensure transparency and security. Additionally, the FSC plans a trial run for crypto custody services through local banks, letting institutional clients safely store their digital assets. If successful, crypto custody could roll out fully by 2025, putting Taiwan at the forefront of global crypto adoption. The initiative highlights Taiwan’s push to become a leading crypto hub in Asia. New regulations may provide a clear framework for managing digital assets while leveraging the country’s strong financial infrastructure and tech-savvy population. Prior to this move, Taiwan had taken a cautious approach to crypto regulations. In 2013, the FSC released a statement naming Bitcoin as a highly speculative digital commodity. Later, the institution banned local banks from accepting Bitcoin or providing any related services, such as exchanging Bitcoin for fiat currency. In 2017, the FSC reiterated its stance. The recent declaration marks a significant departure from Taiwan’s earlier approach.
