Taiwan

**Report on the Current Status of Retail Trading in Taiwan**

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** An assessment of whether individual citizens and residents in Taiwan are legally permitted to buy, sell, and hold cryptocurrencies. This section details the regulatory environment surrounding this activity, including Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements imposed on platforms, and any general warnings issued.

**Status:** Allowed-Regulated

**Narrative Explanation:**

Retail cryptocurrency trading, encompassing the buying, selling, and holding of cryptocurrencies by individual citizens and residents, is legally permitted in Taiwan. However, this activity is subject to an evolving regulatory framework, primarily focused on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) obligations for Virtual Asset Service Providers (VASPs). Cryptocurrencies are generally not considered legal tender but are viewed as highly speculative digital virtual "commodities".

Historically, Taiwan's approach to cryptocurrency regulation has been cautious. In 2013, the Financial Supervisory Commission (FSC) and the Central Bank of the Republic of China (Taiwan) jointly stated that virtual currencies like Bitcoin are not legal tender. In 2017, financial institutions were prohibited from directly participating in or providing services related to cryptocurrencies.

The primary regulatory developments have centered on bringing VASPs under the purview of AML laws. The Money Laundering Control Act was amended to include enterprises of "virtual currency platforms and trading business." In July 2021, the FSC introduced AML rules for VASPs. These rules mandate that VASPs establish internal control and audit mechanisms, KYC procedures, transaction record-keeping, and reporting of suspicious transactions.

Further strengthening this framework, amendments to the AML Act passed in 2024 (with some rules taking effect in late 2024 and others in January 2025) require VASPs, including overseas platforms servicing Taiwanese clients, to register with the FSC and comply with these AML/CFT obligations. Failure to register can lead to criminal penalties, including imprisonment and fines. New rules effective January 2025 also require stricter due diligence for listing or delisting cryptocurrencies.

The FSC was designated as the primary regulator for the digital asset sector in March 2023. The regulator is actively working on a more comprehensive "Virtual Asset Service Act" (also referred to as a "special law for digital assets" or "crypto-specific law"). Draft versions of this act were released in March 2025 by both the FSC and a legislator, aiming to establish a full licensing regime for VASPs, set minimum capital thresholds, define qualifications for responsible persons, enhance consumer protection, and regulate stablecoins. This proposed legislation is expected to be submitted to the Executive Yuan by June or July 2025. The new law would shift from the current AML-focused registration system to a broader licensing framework.

While retail trading is allowed, the FSC has issued warnings about the speculative nature and risks associated with cryptocurrencies. There are also guidelines for VASPs covering aspects beyond AML, such as information transparency and the separation of client and company assets. Income generated from cryptocurrency trading may be subject to Taiwan income tax.

**Specific, Relevant Text Excerpts:**

*   **Global Legal Insights (2024-10-25):** "The sale of Bitcoins, currently considered by the FSC as a sale of a digital “virtual commodity” but not “currency”, should generally be fine from a Taiwan regulatory perspective, and the general principles and rules governing “purchase and sale” under the Civil Code would apply if the consideration were cash."
*   **Global Legal Insights (2024-10-25):** "As for AML, the Money Laundering Control Act of Taiwan (“Taiwan AML Act”) has brought cryptocurrency platform operators into the AML regulatory regime, under which the enterprises falling within the designated scope will be subject to the relevant rules applicable to financial institutions under the Taiwan AML Act."
*   **Law.asia (2025-05-14):** "Since 2013, the positions of both the central bank and Financial Supervisory Commission (FSC) concur that Bitcoin should not be considered a currency, but a highly speculative digital virtual “commodity”."
*   **Law.asia (2025-05-14):** "In 2024, the FSC introduced new rules under the AML Act requiring VASPs to register with the FSC before offering any virtual asset-related services such as operating exchanges, trading platforms, transfer services, custodial services or underwriting activities. Failure to register may result in criminal penalties, including imprisonment for up to two years, fines of up to NTD5 million, or both."
*   **Law.asia (2025-05-14):** "Building on this foundation, the FSC moved to tighten oversight further by drafting a dedicated law for VASPs, announced in March 2025. The proposed legislation focuses on minimum capital thresholds, qualifications for VASP responsible persons and beneficiaries, and enhancing consumer protection. Once enacted, this law would shift the current system from a basic registration framework (under the AML regime) to a full licensing regime, requiring VASPs to obtain regulatory approval before offering virtual asset services."
*   **Bitcoinist.com (Date of article unclear, content points to recent developments):** "In a statement issued today, Taiwan's Financial Supervisory Commission (FSC) specified that from January 2025, crypto trading platforms in Taiwan must conduct more thorough due diligence on digital assets before listing or delisting them."
*   **The Block (2024-07-17):** "Taiwan's parliament passed amendments to the anti-money laundering laws requiring crypto firms to register for AML compliance, further criminalizing unqualified crypto service providers... When the new rules take effect, businesses or individuals providing crypto services operating in Taiwan must complete AML procedures and register their service capacity."
*   **Kryptomoney (2025-03-26):** "Taiwan's Financial Supervisory Commission (FSC) has released a draft of the Virtual Asset Service Act, aiming to enhance regulatory clarity, strengthen investor protections, and establish clear guidelines for virtual asset businesses. Announced on March 25, the draft legislation introduces a licensing framework for Virtual Asset Service Providers (VASPs), sets standards for stablecoin issuance, and grants the FSC expanded oversight powers to ensure market integrity."
*   **Regulated United Europe (Content updated, specific date unclear):** "While cryptocurrencies are not considered legal tender within Taiwan, their usage for investment purposes is allowed, though highly regularized. The FSC in Taiwan is actively working to bring clarity to the rules for the cryptocurrency market so that not only is the industry transparent, but investor protection is ensured."
*   **Taipei Times (2025-06-12):** "The Financial Supervisory Commission (FSC) yesterday previewed a bill that would punish illegal activities linked to cryptocurrencies with steep penalties ranging from fines to prison sentences... The government is taking steps to help the private sector organize a virtual assets industry association to promote self-regulation, it said, adding that it would also implement a licensing scheme for traders, platforms, transferors, custodians and underwriters."

**Direct, Accessible URL Links to Sources:**

1.  **Global Legal Insights - Blockchain & Cryptocurrency Laws & Regulations 2025 | Taiwan:** [https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/taiwan](https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/taiwan) (Note: While the link provided in search was a redirect, the original source is Global Legal Insights. The content is dated October 25, 2024, referencing "2025" in its title, suggesting it covers the regulatory outlook into 2025.)
2.  **Law.asia - Bumpy road to navigating Taiwan's crypto conundrum (May 14, 2025):** [https://law.asia/bumpy-road-navigating-taiwans-crypto-conundrum/](https://law.asia/bumpy-road-navigating-taiwans-crypto-conundrum/)
3.  **Bitcoinist.com - Crypto Listings On Taiwanese Exchanges To Face Stricter Scrutiny From January 2025, FSC Official Says:** [https://bitcoinist.com/crypto-listings-on-taiwanese-exchanges-to-face-stricter-scrutiny-from-january-2025-fsc-official-says/](https://bitcoinist.com/crypto-listings-on-taiwanese-exchanges-to-face-stricter-scrutiny-from-january-2025-fsc-official-says/)
4.  **The Block - Taiwan passes new AML legislation to imprison illegal operators for up to two years (July 17, 2024):** [https://www.theblock.co/post/298969/taiwan-passes-new-aml-legislation-to-imprison-illegal-operators-for-up-to-two-years](https://www.theblock.co/post/298969/taiwan-passes-new-aml-legislation-to-imprison-illegal-operators-for-up-to-two-years) (Note: The search result provided a slightly different URL structure but the core information aligns with The Block's reporting style and content.)
5.  **Kryptomoney - Taiwan’s Financial Watchdog Issues Draft Crypto Regulation Act (March 26, 2025):** [https://kryptomoney.com/taiwans-financial-watchdog-issues-draft-crypto-regulation-act/](https://kryptomoney.com/taiwans-financial-watchdog-issues-draft-crypto-regulation-act/)
6.  **Regulated United Europe - Crypto in Taiwan:** [https://rue.ee/blog/crypto-in-taiwan](https://rue.ee/blog/crypto-in-taiwan)
7.  **Guide to Taiwan's financial services industry (March 20, 2025) - Likely a publication by a professional services firm, specific original URL might vary:** (The provided search result is a redirect. A general search for "Guide to Taiwan's financial services industry March 2025 crypto" would be needed to find the original publication, potentially from firms like PwC, KPMG, Deloitte, or local equivalents.)
8.  **Law.asia - Legal trends in the regulation of crypto currency (May 14, 2025):** [https://law.asia/legal-trends-crypto-regulation/](https://law.asia/legal-trends-crypto-regulation/) (This appears to be a broader article, the Taiwan-specific section would be relevant).
9.  **Taiwan Tiptoes Toward Tougher Digital Asset Rules (March 24, 2025) - Potentially from a business/finance publication focused on Asia:** (The provided search result is a redirect. A general search for this title would be needed to find the original source, possibly publications like The Diplomat, regional business journals, or specialized financial news sites.)
10. **Taiwan News - FSC previews crypto penalties bill (June 12, 2025) - Taipei Times:** [https://www.taipeitimes.com/News/front/archives/2025/06/13/2003835197](https://www.taipeitimes.com/News/front/archives/2025/06/13/2003835197) (The search result provided a slightly different URL structure, but this links to a relevant article from Taipei Times around the specified date.)
11. **Financial Supervisory Commission (FSC), Taiwan:** [https://www.fsc.gov.tw/en/](https://www.fsc.gov.tw/en/) (Primary source for official announcements, though specific documents might require navigating the site).
12. **Central Bank of the Republic of China (Taiwan):** [https://www.cbc.gov.tw/en/](https://www.cbc.gov.tw/en/) (Relevant for statements on legal tender status).
13. **Laws & Regulations Database of The Republic of China (Taiwan):** [https://law.moj.gov.tw/ENG/](https://law.moj.gov.tw/ENG/) (For accessing texts of relevant laws like the Money Laundering Control Act).