Taiwan regulates virtual-asset businesses through a multi-agency model led by the Financial Supervisory Commission (FSC), with the Central Bank of the Republic of China (Taiwan), the Ministry of Justice (MOJ) for AML/CTF, and the industry’s self-regulatory body TVASPA providing additional oversight and coordination.

Crypto is not legal tender; it is treated as a virtual commodity/investment asset. Core obligations center on AML/CTF, real-name verification, internal controls, and consumer protection.

• Operate an exchange (retail & institutional spot markets)
• Provide wallet/custody (segregated client assets, key-management standards)
• Run other VA services/projects (subject to scope alignment and ongoing AML/CTF compliance)
• Join TVASPA (recommended SRO participation for standards and cooperation)

Primary regulator: FSC (designated lead for crypto since Mar 2023).

Supporting authorities: Central Bank (policy/monitoring), MOJ (AML enforcement).

Self-regulation: Taiwan VASP Association (TVASPA)—industry standards, best practices, and coordination with authorities.

• Map services and target users; build end-to-end AML/KYC/EDD and real-name flows.
• Draft a comprehensive business plan, governance model, and org chart.

• Submit the application pack to the FSC: business plan, AML policies, tech/cyber documentation, company structure, key-person details (fitness & propriety).
• Expect completeness checks and clarifications; background checks on principals.

• On approval/conditional approval, open a corporate account with a local bank or EMI, providing license/registration documents and compliance evidence.
• Core dossier components: Business plan; AML/CTF framework; technical & security documentation; financials/tax records; IDs and background checks for directors/officers.

• Taiwan legal entity (local registration required for overseas firms before serving TW clients)
• Physical office & on-shore operating capability
• AML Officer (management-level) and compliance function
• Clean criminal records for directors/officers; proven AML/CTF competence
• Internal controls: segregation of client vs platform assets, change management, incident response
• Listing/review mechanism for asset admission & delisting
• Banking/EMI relationship suitable for VA flows
• (If issuing tokens): publish a white paper and observe STO/SEA rules where applicable
• No statutory minimum capital in general; appropriate paid-in capital should reflect risk, scale, and service set.

• Money Laundering Control Act (AML): mandatory AML/CTF program, effective July 1, 2021 (scope clarified Apr 2021).
• Securities and Exchange Act (SEA): applies where a token qualifies as a security; STO Regulations (2019) set specific compliance.
• FSC Guiding Principles (Sept 2023): governance, custody, listing reviews, consumer protection, disclosure, and internal controls.
• TVASPA (June 2024): 24 founding members; collaborative self-regulation and anti-fraud initiatives with government.

• Form a limited company under the Company Act (name check, Articles, scope).
• Appoint ≥1 director, establish a local office, books and records on-shore.
• After incorporation, prepare the VASP submission (see Process) and align operations (staffing, vendors, cybersecurity, audit trail).

• Corporate Income Tax: 20% on net taxable income.
• Capital Gains: taxed under general income rules (no crypto-specific CGT regime).
• Withholding: generally 21% for non-resident dividend recipients (treaty may vary).
• VAT: 5% may apply to on-shore transactions; nexus and transaction type determine liability.
• Foreign entities creating a permanent establishment (branch) → Taiwanese CIT applies.

• Periodic reports to FSC/authorities; cooperate on inspections.
• Continuous CDD/EDD, monitoring, sanctions screening, STRs.
• Strict segregation of client assets; reconciliations; wallet governance (hot/cold splits, key ceremonies).
• Governance & internal control: risk management, audit/compliance testing, incident logs.
• TVASPA participation recommended for shared standards and anti-fraud work.

• Fines and remedial orders for AML/CTF/control failures.
• License/registration revocation or restrictions for serious breaches.
• Criminal liability (incl. imprisonment) for severe AML/CTF violations.
• Public disclosures can damage reputation and customer trust.
• Proposed AML amendments (2024) increase penalties for non-compliance.

1. Incorporate in Taiwan; secure office; appoint directors.
2. Hire AML Officer; finalize AML/CTF & real-name program.
3. Prepare dossier: business plan, tech/cyber, custody, governance, listing policy.
4. File with FSC; respond to Q&A and background checks.
5. Open local banking/EMI account; align ops and reporting.
6. Go live; maintain audits, monitoring, and SRO engagement.