Taiwan Passes Virtual Asset Service Act With 12- and 21-Month Transition Deadlines

Taiwan's Legislative Yuan passed the Virtual Asset Service Act in its third reading, setting 12-month and 21-month transition deadlines for anti-money laundering (AML)-registered cryptocurrency platforms. According to NS3.AI, President Lai Ching-te is expected to promulgate the law within 10 days. Under the legislation, stablecoin issuers must obtain approval from the central bank and the Financial Supervisory Commission (FSC) and maintain full reserve backing. The law also outlines penalties for illegal operators, including up to seven years in prison and fines of up to NT$100 million.