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Home/News/Taiwan passes sweeping crypto law with licensing, reserve mandates, and prison penalties
CoinDesk·3h ago·positive

Taiwan passes sweeping crypto law with licensing, reserve mandates, and prison penalties

Taiwan's Legislative Yuan passed the Virtual Asset Service Act, requiring all crypto exchanges and platforms to obtain FSC licenses, imposing 100% reserve mandates for stablecoins, and introducing prison sentences of up to 10 years for violations.

  • All crypto service providers must obtain a license from Taiwan's Financial Supervisory Commission (FSC) to operate legally
  • Stablecoin issuers need approval from both the central bank and FSC, with 100% asset reserves required at all times
  • Unauthorized operations carry up to 7 years in prison and fines of $3.14 million; market fraud carries 3-10 years
  • Existing AML-registered platforms get 12 months to apply for licenses and up to 21 months for full approval
  • The bill now heads to President Lai Ching-te for formal signing, expected within 10 days
regulationImpact 7/10
Why our editor rated this positive

Clear regulatory framework brings legal certainty for crypto businesses in Taiwan, with licensing paths and consumer protections. While strict, the law legitimizes the industry rather than banning it, which is positive for long-term adoption.

Read the full story at CoinDesk

Coinporta summarises news for fast scanning. Full reporting belongs to the source.

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