Taiwan Passes Its First Full Crypto Law With Licensing, 100% Stablecoin Reserves, and Prison Time

Taiwan Passes Its First Full Crypto Law With Licensing, 100% Stablecoin Reserves, and Prison Time


Taiwan Legislative Yuan building and cityscape for a ProCoinNews article about Taiwan's new crypto and stablecoin law. image By Isaac • July 1, 2026 9:18 am •

Taiwan just gave crypto a real legal spine.

On June 30, 2026, the Legislative Yuan passed the Virtual Asset Service Act in its third reading. It is the island’s first comprehensive law covering both crypto firms and stablecoins.

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The short version: exchanges and other virtual asset service providers now have to get a license from the Financial Supervisory Commission before they operate. Stablecoin issuers face reserve rules and audits.

Running either without approval can land you in prison.

This is a jump from where Taiwan was. Until now the framework leaned on basic anti-money-laundering registration.

The new law adds licensing, custody controls, reserve mandates, cybersecurity expectations, and criminal penalties for market abuse.

NEW: Taiwan passes

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