Proposed virtual asset services act to bolster industry operation and development

To bolster the operation and development of virtual asset businesses, protect traders' rights and increase market trust, the Executive Yuan on Thursday approved the Financial Supervisory Commission's (FSC) draft virtual asset services act, which will now be submitted to the Legislative Yuan for deliberation.

Premier Cho Jung-tai highlighted that the proposed act provides virtual asset service providers (VASPs) and stablecoin issuers with a comprehensive and clear regulatory framework that will support industry compliance and growth, while also establishing rules to strengthen financial soundness, ensure segregated custody of assets and guard against unfair trading, thereby safeguarding clients' assets.

The premier directed the FSC to reinforce their supervision of VASPs and anti-fraud capabilities, protect citizens' assets and bring Taiwan's virtual asset regulations in line with international standards, so as to promote market stability and enhance the competitiveness of Taiwan's financial industry.