Advance Notice of Eight Draft Regulations Authorized under the “Virtual Asset Services Act” Governing the Management of Virtual Asset Service Providers

2026-11-12

The Financial Supervisory Commission (hereinafter referred to as the “FSC”) has drafted eight sets of regulations: the “Regulations Governing the Establishment of Virtual Asset Service Providers,” the “Rules Governing the Management of Responsible Persons and Business Personnel of Virtual Asset Service Providers,” the “Regulations Governing the Management of Virtual Asset Service Providers,” the “Regulations Governing the Establishment of Internal Control and Audit Systems by Virtual Asset Service Providers,” the “Regulations Governing the Outsourcing of Operations by Virtual Asset Service Providers,” the “Regulations Governing Virtual Asset Accounts and Suspected Illegal or Obviously Abnormal Transactions,” the “Regulations Governing the Preparation and Filing of Financial Reports by Virtual Asset Service Providers,” and the “Rules Governing the Management of the Virtual Asset Service Providers Trade Association.” In accordance with the Administrative Procedure Act, the eight draft regulations will be announced for public comment in the coming days to solicit opinions from all sectors. The Virtual Asset Services Act (hereinafter referred to as the “Act”) was promulgated by the President on July 22, 2026, and its effective date will be separately determined by the Executive Yuan. In preparation for the implementation of the Act, the FSC has formulated the aforementioned eight authorized regulations governing virtual asset service providers (hereinafter referred to as “VASPs”), taking into account international regulatory trends and the practical circumstances in Taiwan. These regulations cover areas including business establishment and licensing for operators, the management of responsible persons and business personnel, business and financial management, internal controls, operational outsourcing, the management of accounts suspected of being involved in illegal activities or transactions, the preparation of financial reports, and the management of trade associations. The main points are explained below.

I. Market Entry Requirements and Applicants:

• (I) Minimum Paid-in Capital Required: Minimum paid-in capital requirements have been established for each category of VASP based on the nature of the business and operational needs. The required amounts are NT$50 million for exchange service providers, transfer service providers, or underwriters; NT$100 million for trading platform operators or custodians; and NT$200 million for lending service providers. Those engaging in two or more types of business must aggregate the applicable amounts. Financial institutions concurrently operating VASP businesses and overseas VASPs establishing branch offices in Taiwan must also allocate dedicated operating funds in accordance with the aforementioned amounts.

• (II) Targets and Scope of Virtual Asset Businesses Concurrently Conducted by Financial Institutions:

  • 1. Regulatory authorities in different countries currently adopt varying approaches to the supervision of financial institutions concurrently operating VASP businesses. Some authorities do not permit financial institutions to concurrently operate VASP businesses, requiring them to participate through equity investments or the establishment of subsidiaries, while others directly permit such concurrent operations. Taiwan adopts the principles of gradual liberalization and diversified participation. Initially, banks that are already actively engaged in virtual asset custody services will be permitted to concurrently operate such businesses. Participation by other financial institutions will be gradually opened up depending on industry developments.

  • 2. Regarding the scope of businesses that financial institutions concurrently operate, taking into account the risk characteristics of various types of businesses and practical needs, such as cross-border trade and fund transfers by enterprises, the initial policy is to permit four types of businesses: exchange services, transfer services, custody services, and underwriting services. Exchange and transfer services will be limited to corporate clients. Furthermore, considering that the virtual asset industry continues to develop and that New Taiwan dollar stablecoins may also expand into diverse application scenarios in the future, the draft regulations reserve flexibility for the FSC to permit financial institutions to concurrently operate other types of virtual asset businesses.

II. Strengthening the Financial and Business Management of VASPs and Enhancing the Protection of Client Rights and Interests:

• (I) Setting the Required Amounts of Operating Bonds Based on Business Type and the Scale of Client Asset Custody:

  • 1. The amount of the business guarantee required to be deposited by a VASP is determined based on the level of business risk. The required amounts to be deposited are NT$10 million for exchange service providers, transfer service providers, or underwriting service providers; NT$30 million for trading platform service providers or custody service providers; and NT$50 million for lending service providers. Where a VASP engages in two or more types of business, the required amounts are aggregated. The FSC may also increase the amounts required to be deposited based on the VASP's capital, business scale, and level of risk.

  • 2. In addition, to enhance the security of virtual assets held in custody by VASPs for clients, custody service providers are required to make an additional business guarantee deposit of 2.5% at the end of June and the end of December each year. The amount shall be calculated based on the balance of virtual assets held in custody, less the amounts entrusted to financial institutions for custody or attributable to other items approved by the FSC.

• (II) Addition of the Management of Virtual Asset Lending Service Providers: Virtual asset lending service providers borrow virtual assets from clients and agree to return or deliver the same or a greater quantity or value of virtual assets. They are under a continuing obligation to return virtual assets and face higher liquidity risks. Accordingly, the FSC has formulated relevant supervisory measures, including qualification requirements that lending service providers possess at least one year of experience operating a trading platform business or at least two years of experience in both exchange and custody businesses, as well as restrictions on the purposes, quantities, and types of borrowed virtual assets that may be used.

• (III) Qualifications and Training for Business Personnel: Business personnel are required to complete at least 24 hours of VASP professional courses, pass the examination, and obtain a certificate of completion. They are also required to undergo pre-employment training within six months of commencing employment and participate in on-the-job training every two years to acquire professional knowledge related to VASP operations and the market.

• (IV) Establishment of Internal Control and Audit Systems: VASPs should design and effectively implement their internal control systems by taking into consideration the overall business activities of themselves and their subsidiaries, and establish the three-lines-of-defense model of internal control, comprising the "self-assessment system," the "legal compliance system, risk management mechanism, and information and communications security management system," and the "internal audit system," to maintain the effective and proper operation of their internal control systems.

• (V) Preparation, Publication, and Filing of Financial Reports: VASPs should prepare financial reports in accordance with relevant laws and regulations and International Financial Reporting Standards (IFRS); they must also publish and file semi-annual financial reports reviewed by certified public accountants within two months after the end of each fiscal half-year, as well as annual financial reports audited by certified public accountants within three months after the end of each fiscal year.

III. Self-Regulation by Industry Associations and Operators: The VASP association should establish self-regulatory rules governing members' engagement in virtual asset-related services and formulate relevant rules governing members' promotional activities and advertising, inspections of members' financial and business operations, and dispute mediation in order to strengthen the association's management of its members.

IV. Establishment of Relevant Regulations to Meet the Needs of the Central Bank’s Business Supervision: The FSC has consulted with the Central Bank and, in accordance with the Central Bank's foreign exchange management needs, established requirements concerning the qualification criteria for business personnel, annual client management limits, and transaction control mechanisms. In addition, to meet the needs of monetary policy, statistical research, and analysis, the FSC has established requirements authorizing the Central Bank to request that VASPs report information related to virtual asset transactions.

V. Transitional Provisions for Existing Operators: In view of the fact that this Act and its relevant authorized subordinate regulations will be promulgated and come into force on the same date, the relevant draft provisions have established corresponding transitional arrangements for the application procedures for licenses by existing operators; financial, business, and personnel management; and internal control systems, to facilitate the transition to the new system for VASPs that completed anti-money laundering registration with the FSC before this Act takes effect and financial institutions providing virtual asset services.

Following the passage of this Act, the regulations for VASPs have been enhanced into a comprehensive supervisory framework covering business establishment, operational management, financial soundness, internal controls, industry self-regulation, and market order. The eight draft subordinate regulations authorized by this Act have been formulated to specify the various supervisory requirements stipulated therein. In addition to being published in the Executive Yuan Gazette, the general explanations and article-by-article explanations of the drafts will also be published on the FSC website. Any parties wishing to provide comments may submit their opinions through the “Draft Notices” section of the FSC's “Laws and Regulations Retrieving System” or contact the Securities and Futures Bureau of the FSC within 40 days from the day after the draft notice is published in the Executive Yuan Gazette. The FSC will also continue to communicate and consult with relevant industry associations, operators, and other stakeholders to solicit comments from all sectors, with a view to improving the VASP regulatory framework and strengthening the protection of traders' rights and interests.

Contact: Securities Firms Division, Securities and Futures Bureau Telephone: (02) 2774-7342 For any inquiries, please email: