Taiwan's virtual asset regulation is entering a new phase. The Financial Supervisory Commission recently announced the draft of the (Virtual Assets Service Act) and plans to submit it for review to the Executive Yuan by the end of June at the earliest. To gather public opinion and industry voices, the Financial Supervisory Commission plans to hold more than 22 public hearings. The new regulations not only concern market order and investors' rights but also become a key turning point for the future development of domestic operators and international competitiveness.
The draft is in the final stages, and the Financial Supervisory Commission plans to hold 22 public hearings
Financial Supervisory Commission Chairman Peng Jinlong pointed out in an interview on April 30 that the (Virtual Assets Service Act) draft is entering the final revision stage and is expected to be submitted to the Executive Yuan before the end of June. To fully consolidate suggestions from all sectors of society, the Financial Supervisory Commission will hold at least 22 public hearings, hoping to create a legal framework that balances innovation and risk management.
The industry hopes for tiered management to open up more diverse virtual asset products
Most operators suggested at the public hearings that the regulatory system should adopt 'gradual' and 'tiered management' principles, applying different degrees of regulatory intensity based on the scale and business risks of operators. They also urged the government to moderately open up domestic operators to conduct more diverse products such as ETFs and perpetual contracts to avoid being outpaced by foreign platforms, resulting in competitive disadvantages for local operators.
VASP Association proposed three suggestions: tiered supervision, extended transition period, and learning from Hong Kong's experience
The Republic of China Virtual Currency Business Association (VASP Association) pointed out that the (Virtual Assets Service Act) should reference the (Regulations Governing Electronic Payment Institutions), distinguishing regulatory intensity based on the amount of assets under custody and business risk levels. For example, a licensing system should be applied to large operators, while small, low-risk operators should maintain a registration system. They also suggested extending the current six-month transition period to one year, similar to Hong Kong's experience in combating terrorism financing, to provide operators with more ample adjustment time.
HOYA BIT calls for clear listing and delisting standards, and auditing systems for stablecoins are essential
HOYA BIT founder Peng Yunxian stated that the government should establish a clear, gradual review standard and process for the listing and delisting of virtual assets, which will help stabilize the market and enhance transparency. She also suggested setting up a warning mechanism and a buffer period to reduce market volatility caused by asset delisting. Regarding stablecoins, Peng Yunxian emphasized that issuers should be required to have sufficient reserves and regularly publish audit reports to ensure asset convertibility and safety.
MaiCoin suggests including more financial innovation products
The domestic large virtual asset platform MaiCoin Group suggested that future regulations should include more potential virtual asset businesses, such as cryptocurrency ETFs, perpetual contracts, and dual-currency options, to encourage innovative development while avoiding foreign platforms from monopolizing emerging business opportunities and further widening the competitive gap.
Law professor Yang Yueping: The draft has a flexible framework, and details should be left to subsidiary laws for regulation
Regarding the content of the draft, Associate Professor Yang Yueping from the National Taiwan University College of Law pointed out that although the current draft does not list specific implementation details, there is already a framework for tiered management. If the main legal provisions are overly detailed, future amendments may face difficulties; thus, detailed regulations should be supplemented and adjusted through future subsidiary laws, regulatory orders, or administrative rules.
Lending operations are first included under a specialized law, marking an international rare institutional breakthrough
Yang Yueping further explained that this draft formally incorporates 'virtual asset lending operations' into regulations for the first time, which is an important breakthrough compared to the current registration system. The model allows investors to lend stablecoins to operators, who then provide interest compensation. Such operations are still among the few legally supervised areas internationally. If Taiwan can take the lead in supervision, it will help enhance market trust and regulatory competitiveness.
The new law is expected to be implemented in two years at the earliest, and there is still room for reform
Although the draft is about to be completed and submitted for review, academia generally estimates that even if the legislative three readings are completed this year, it will still take at least two to three years for formal implementation. This period will be a golden opportunity for the government and industry to collaboratively adjust, experiment, and refine the supervisory model. Whether future regulations can protect investors' rights while allowing room for industrial innovation will be the key measure of the new law's success or failure.
This article reports that the Financial Supervisory Commission is promoting the draft of the (Virtual Assets Service Act)! It is expected to be sent to the Executive Yuan by the end of June at the earliest, with lending operations first included under a specialized law, first appearing in Chain News ABMedia.