Taiwan FSC VASP Licensing System

System Overview

Taiwan’s FSC (Financial Supervisory Commission) established the VASP (Virtual Asset Service Provider) system through the 2021-07 AML law amendment. It is positioned as an independent framework running in parallel with the existing 6 sectors (securities/banking/insurance/futures/trust/investment trust), and preparations for dedicated legislation (Draft Virtual Asset Service Act) have been under way during 2024-2025 . It is currently the most flexible framework in Asia, but is a transitional period in which structural formalisation is expected in the near future.

Current System (AML-Centred)

• AML registration required: VASPs are obligated to comply with the Money Laundering Control Act and related legislation
• Customer identity verification: KYC + EDD (Enhanced Due Diligence) implementation
• Suspicious transaction reporting: Reported via the Ministry of Justice Investigation Bureau (MJIB)
• No restrictions on listed assets (current): Operators decide listings at their own discretion · To be clarified under future dedicated legislation

Major Operators (2024-2026)

• MaiCoin / MAX (now MaiCoin Exchange) — Largest domestically · Founded by Tsai Chen-ping
• BitoPro (BitoEX) — Founded by Cheng Kuang-tai · Established 2014 · Established local operator
• ACE Exchange — Multi-currency support · Established 2018
• Hoo Exchange Taiwan — Overseas-origin · Currently suspended
• Rybit / Kronos Research — Primarily institutional OTC trading

2024 Legislative Developments

• 2024-09 Draft Virtual Asset Service Act published
• 2025-2026 Legislative Yuan deliberations ongoing
• Expected requirements: Licensing system + asset review + cold storage obligation + client asset segregation — expected to converge towards Japan/Hong Kong model

International Comparison

FSA crypto-asset exchange registration system — number system / Local Finance Bureau jurisdiction / registration requirements (registration + JVCEA self-regulation) vs Taiwan FSC (AML-centred · lighter) vs Hong Kong SFC VASP licensing regime — VATP regime + licensed CEX overview (Type 1+7 strict) vs Korea's 5 major CEX regimes compared — Upbit / Bithumb / Coinone / Korbit / GOPAX (real-name accounts + ISMS) — Taiwan is currently the most flexible in Asia, but is moving towards convergence as legislation progresses.

Cross-links

• fsa-vasp-registration-system
• korea-cex-five-pillars-comparison
• hk-sfc-vasp-licensing-overview
• sg-mas-dpt-licensing-overview
• uae-vara-licensing-overview
• global-cex-top10-comparison