Taiwan Passes Sweeping Crypto Law With Licensing, Stablecoin Rules

An important story is making waves across the blockchain ecosystem. In brief Taiwan's Legislative Yuan passed the Virtual Asset Service Act in its third reading on June 30, sending it to President Lai Ching-te for promulgation. All virtual asset service providers must be licensed by the Financial Supervisory Commission before operating; stablecoin issuers need the central bank's consent and FSC approval, and must hold full reserves in trust.

Operating without a license can bring up to seven years in prison and fines of up to NT$100 million (about $3. 1 million), while fraud or market manipulation carries three to 10 years.

Crypto markets are watching this development closely as investors weigh its potential impact on prices.