Taiwan Passes Digital Asset Law to Boost Crypto Market

Taiwan has passed a new digital asset law aimed at developing its cryptocurrency market. The Virtual Asset Service Act, passed on June 30, sets out licensing requirements for virtual asset service providers and requires them to obtain approval from the Financial Supervisory Commission (FSC) to operate.

Olivier Fines, head of advocacy and policy research at CFA Institute, views the new law as a constructive step towards becoming a credible centre for digital asset activity. He believes it marks a shift from anti-money laundering registration alone to full FSC licensing with a dedicated market-abuse regime.

According to Yu-Hsun Li, a partner at PricewaterhouseCoopers Taiwan, the legislation will create opportunities for the development of new investment products related to cryptocurrencies and stablecoins. It also signals a clear policy direction towards enabling more structured and regulated virtual asset-related investment products.