Taiwan’s Financial Supervisory Commission (FSC) is drafting nine sets of supplementary regulations under the Virtual Asset Service Act, targeting finalization and enforcement by Q1 2027. The Act, comprising 56 articles, was passed by the Legislative Yuan on June 30, 2026 and establishes mandatory licensing for seven categories of operations including exchanges, transfers, custody, and lending. Domestic stablecoin issuers must obtain FSC permission and maintain 1:1 reserves in segregated accounts at local financial institutions, while foreign tokens like USDT and USDC are classified as commodities rather than regulated stablecoins. Existing operators have 12 months to apply for their licenses and up to 21 months to achieve full compliance, with penalties reaching up to seven years imprisonment and NT$100 million in fines for unlicensed operation.
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