Taiwan’s Financial Supervisory Commission (FSC) and legislator Huang Shan-shan have drafted proposals to regulate the crypto industry.  The FSC released a “Virtual Asset Service Act” draft, while Huang introduced her version this week.

Both proposals require crypto platforms in Taiwan to obtain a license, and overseas providers must establish local entities and secure permits.

Huang plans to propose the draft for a first reading soon, aiming for enactment by the end of 2025.

The FSC will gather public feedback until May 24 and submit the draft to the Executive Yuan by June.

This initiative follows a failed attempt in 2023 to pass a similar bill. The new regulations are expected to raise compliance costs for crypto providers, who must meet anti-money laundering (AML) requirements.

Non-compliance could result in fines or imprisonment. Legal experts suggest a tiered regulatory approach for smaller firms to ease the burden.