Taiwan's Financial Supervisory Commission (FSC) has drafted eight regulations for virtual asset service providers (VASPs) ahead of public consultation. The package would establish licensing and capital requirements, limit financial institutions' initial participation and strengthen client asset safeguards and operational oversight. The drafts would implement the Virtual Asset Services Act, whose effective date remains to be determined by the Executive Yuan.
Proposed minimum capital requirements are TWD 50 million for exchange, transfer or underwriting providers, TWD 100 million for trading platforms or custodians, and TWD 200 million for lenders. Requirements would be cumulative across business types. Financial institutions conducting VASP business and overseas providers establishing Taiwan branches would need equivalent dedicated operating funds. Financial institutions' initial participation would be limited to banks already active in virtual asset custody, with permission covering exchange, transfer, custody and underwriting services. Exchange and transfer services would be restricted to corporate clients. Lending providers would need at least one year of trading platform experience or at least two years in both exchange and custody, and would face restrictions on the use of borrowed assets.
Separate business guarantee deposits would range from TWD 10 million for exchange, transfer or underwriting providers to TWD 30 million for platforms or custodians and TWD 50 million for lenders, with amounts aggregated across activities. Custodians would also need an additional guarantee deposit calculated at 2.5% of client virtual assets at the end of June and December, excluding assets entrusted to financial institutions and other FSC-approved deductions. Operational requirements would include an internal control framework with three lines of defense and financial reporting under International Financial Reporting Standards. VASPs would have to publish and file accountant-reviewed financial reports within two months of each fiscal half-year and audited annual reports within three months of year-end. The drafts also provide transitional arrangements for existing operators that complete anti-money laundering registration before the act takes effect and for financial institutions providing virtual asset services.