Taiwan's Legal Cryptocurrency Platforms Number Only 8, With 30 Unlicensed Overseas Platforms; Financial Regulator Proposes Legislation

The Taiwan Legislative Yuan’s Finance Committee held a Q&A session on March 23 regarding the “Virtual Asset Service Law Draft,” focusing on core issues beyond the long-term regulation of offshore cryptocurrency platforms. Financial Supervisory Commission Chairman Peng Jinlong admitted that current regulations are indeed insufficient for offshore exchanges but emphasized that the draft has completed Executive Yuan review and has been prioritized for this legislative session. It clearly states that offshore virtual asset service providers (VASPs) must obtain regulatory approval in Taiwan and cannot enjoy special treatment outside the law.

Severe Imbalance in Taiwan’s VASP Market: 8 Legal vs. 30 Blacklisted

DPP legislator Lin Daihua pointed out a structural concern in Taiwan’s virtual asset market: only 8 VASPs are legally registered, while there are up to 30 offshore blacklisted platforms, a ratio of 3.75 to 1.

What’s more worrying is that, according to global cryptocurrency exchange rankings, none of the top ten virtual asset service providers worldwide are legally registered in Taiwan, including Binance, which holds about 50% of the global market share. Binance is neither registered in Taiwan nor listed on the official warning list.

Lin Daihua stated directly that these offshore giants seem to enjoy regulatory exemptions. Meanwhile, compliant Taiwanese operators who have completed real-name verification cannot trace the source of funds from high-risk offshore exchanges, becoming the final endpoint in money laundering networks. She also pointed out that cross-border judicial cooperation is time-consuming and often ignored, severely hindering the investigation of fraud and money laundering cases.

Draft Clearly Defines Two Implementation Paths: Offshore VASPs Cannot Avoid Regulation

According to Article 7, Paragraph 3 of the draft, offshore VASPs must complete one of the following two paths to operate legally in Taiwan:

Path 1: Establish a branch in Taiwan and obtain regulatory approval under Taiwanese law.

Path 2: Apply to establish a new subsidiary in Taiwan, which will also be subject to supervision by the Financial Supervisory Commission.

Peng Jinlong stated that the draft has completed Executive Yuan review and is expected to be submitted to the Legislative Yuan soon. The two paths aim to close the loophole where offshore platforms “only do business without accepting regulation.”

Three Key Points of the Special Law, Market Data, and Custody Mechanism Progress

DPP legislator Lai Hui-yuan reminded that the total market value of the top ten virtual exchanges worldwide has reached $71 trillion. Taiwanese investors were the seventh largest affected group during the FTX collapse, highlighting the long-term lack of consumer protection mechanisms in Taiwan. She emphasized that the virtual currency law must address at least three core issues: operator supervision, anti-theft and anti-fraud measures, and investment risk disclosure.

Peng Jinlong responded that the law will clearly define the types and scope of VASPs, regulate stablecoin issuance and management, and prevent market unfairness. Regarding Taiwan’s current situation, he revealed that about 5% to 10% of the population owns cryptocurrencies, with approximately one million accounts opened with Taiwanese crypto exchanges. The market is still in its early development stage.

In terms of custody mechanisms, Peng disclosed that 19 banks have expressed interest in virtual asset custody services, with five currently in trial. The relevant custody guidelines are expected to be finalized within six months. The current priority is to promote separation of company and client assets and regulate cold and hot wallet ratios as initial steps to protect investors.

Frequently Asked Questions

Q: What are the legally registered cryptocurrency platforms in Taiwan?
As of March 2026, there are 8 legally registered VASPs in Taiwan. Other offshore platforms that do not establish a branch or subsidiary according to the draft regulations are considered illegal. The number of offshore blacklisted platforms on the FSC warning list currently reaches 30.

Q: How can offshore cryptocurrency platforms obtain compliance in Taiwan?
According to Article 7, Paragraph 3 of the Virtual Asset Service Law Draft, offshore VASPs must establish a branch or apply to set up a new subsidiary in Taiwan to obtain regulatory approval before legally providing services to Taiwanese users.

Q: When will the Taiwan Virtual Asset Service Law Draft be officially passed?
The draft has completed Executive Yuan review and has been prioritized for this legislative session. Peng Jinlong said it is expected to be submitted to the Legislative Yuan soon. The timeline for implementation of investor protection mechanisms and offshore platform regulation depends on the legislative review process.