Quick Answer
Yes, cryptocurrency is legal but regulated in Taiwan.
- It is not legal tender but a speculative 'virtual commodity'.
- Service providers must register and follow anti-money laundering (AML) rules.
Legal Status of Crypto in Taiwan
Cryptocurrency in Taiwan exists in a legal gray area, though it is steadily moving toward clearer regulation. It is legal to own and trade digital assets, but they are not recognized as currency by key authorities like the Central Bank and the Financial Supervisory Commission (FSC), which view them as highly speculative 'virtual commodities'. While a comprehensive legal framework is still developing, specific rules are in place, requiring Virtual Asset Service Providers (VASPs) to register with the FSC and comply with Anti-Money Laundering (AML) regulations.
Current Regulations
As of late 2024, Taiwan regulates cryptocurrency primarily through anti-money laundering (AML) rules and securities laws rather than a single, dedicated crypto act. Virtual Asset Service Providers (VASPs) must complete an 'Anti-Money Laundering Registration' with the Financial Supervisory Commission (FSC) before operating, a rule solidified by new measures passed in July 2024. Meanwhile, digital assets that qualify as security tokens are governed by the Securities and Exchange Act, and the FSC has also issued guidelines for VASPs covering asset segregation, cybersecurity, and consumer protection.
Regulatory Authorities
Several government bodies collectively oversee Taiwan's evolving crypto landscape.
- Financial Supervisory Commission (FSC): As the primary financial regulator, the FSC is responsible for issuing guidelines, overseeing VASP registration, and enforcing AML compliance. It also designates certain digital assets as securities and is developing a dedicated legal framework for the crypto industry.
- Central Bank of the Republic of China (Taiwan) (CBC): The CBC works with the FSC to define the official status of cryptocurrencies, classifying them as highly speculative virtual commodities rather than legal tender. It also prohibits local banks from offering bitcoin-related services to maintain financial stability.
- Taipei Exchange (TPEx): Authorized by the FSC, the TPEx is responsible for supervising Security Token Offerings (STOs) and their trading platforms. It collaborates with the FSC to set regulations for STOs and reviews AML compliance filings for VASPs.
- Ministry of Justice Investigation Bureau (IBMOJ): As a key part of AML enforcement, the IBMOJ receives and investigates suspicious transaction reports filed by crypto service providers. This body plays a critical role in combating money laundering and terrorist financing within the virtual asset space.
- Executive Yuan: The Executive Yuan sets high-level policy and has issued rulings that interpret the scope of crypto businesses under Taiwan's AML laws. It directs other agencies, like the FSC, to enact specific rules and regulations to strengthen oversight of the crypto market.
Historical Context
Taiwan's regulatory journey began in 2013 when authorities labeled Bitcoin a 'virtual commodity' and banned banks from related services. A key shift occurred in 2018 when the Money Laundering Control Act was revised to include virtual currency platforms, increasing compliance burdens. In 2019, security tokens were designated as 'securities,' creating a regulated but restrictive path for Security Token Offerings (STOs). More recently, the FSC introduced VASP guidelines in 2023 and mandated FSC registration in 2024, with criminal penalties for non-compliance. This has increased regulatory certainty but also operational risks, pushing the industry toward greater transparency.
Compliance Requirements for Businesses in Taiwan
Businesses in Taiwan, particularly those in finance and virtual assets, must navigate a detailed compliance landscape. Government guidance outlines several mandatory procedures to combat financial crime and protect consumers:
- AML and KYC Checks: Firms must perform risk-based customer due diligence. This involves identifying and verifying the identities of customers and their beneficial owners, and for corporate clients, understanding their business and control structure. According to banking regulations, customer information must be updated at least annually, with enhanced checks applied to high-risk accounts.
- Transaction Reporting: It is mandatory to report large and suspicious transactions. Any transaction exceeding NTD 500,000, along with all suspicious activities, must be reported to the Ministry of Justice Investigation Bureau (IBMOJ). Financial institutions are required to develop their own internal red-flag systems based on their specific risk profiles.
- Internal Controls and Audits: Companies must establish and maintain robust internal control and audit systems. These frameworks require board approval and must encompass risk management, legal compliance, and self-inspection processes that cover all business operations.
- Operational and Consumer Safeguards: Other mandatory procedures involve adhering to strict rules on outsourcing, cybersecurity, and consumer protection. This includes following specific guidelines for supply chain security and ensuring compliance with the Financial Consumer Protection Act, which governs matters like product suitability and dispute resolution.
Why this matters for Cross-Border Payments
For businesses handling cross-border payments, Taiwan's stringent regulations introduce significant operational hurdles. The mandatory AML/KYC checks and transaction reporting requirements can slow the speed of international transfers and increase compliance costs for companies. Specifically, the need to report all transactions over NTD 500,000 and conduct enhanced due diligence creates friction, potentially delaying funds and adding a layer of complexity for businesses managing payments into and out of the country.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark provides an infrastructure layer for instant, global payments using Bitcoin's Lightning Network. Its core products, Lightspark Connect and Grid Switch, address different needs. Connect lets businesses natively access the Lightning Network, with Lightspark managing nodes, liquidity, and routing. Grid Switch enables regulated institutions to tap into this "Money Grid" using domestic payment rails, facilitating cross-border transfers without directly handling Bitcoin. This architecture turns slow, costly international payments into a seamless, 24/7 process, addressing the friction of traditional finance.
To help businesses navigate complex regulatory environments like Taiwan's, Lightspark offers tools that facilitate compliance. The platform provides features like audit-ready reporting and flexible custody options, allowing institutions to maintain control and meet their AML and record-keeping duties. Grid Switch, for instance, integrates with local payment rails and includes features like built-in compliance screening, enabling regulated entities to offer crypto-powered payments while adhering to their existing frameworks.
To learn more about how Lightspark enables instant, compliant cross-border payments, visit the Lightspark website.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
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- Chang, Robin, and Andrea Chen. “Banking Laws and Regulations 2025 – Taiwan.” Global Legal Insights, 11 Mar. 2025, www.globallegalinsights.com/practice-areas/banking-and-finance-laws-and-regulations/taiwan/.
- Chang, Robin, and Eddie Hsiung. “Blockchain & Cryptocurrency Laws and Regulations 2025 – Taiwan.” Global Legal Insights, 25 Oct. 2024, www.globallegalinsights.com/practice-areas/blockchain-cryptocurrency-laws-and-regulations/taiwan/.
- ---. “Bumpy Road to Navigating Taiwan’s Crypto Conundrum.” Law.asia, 14 May 2025, law.asia/taiwan-crypto-regulations-challenges/.
- Hsiung, Eddie. “Taiwan.” Law Over Borders Comparative Guide: Cryptoassets, The Global Legal Post, Apr. 2024, www.globallegalpost.com/lawoverborders/cryptoassets-1166537785/taiwan-1969530332.
- Smart, Nick. “Taiwan’s Crypto Market & Regs.” Crystal Intelligence, crystalintelligence.com/country-guides/taiwans-crypto-market-regulations/.
- “Taiwan & Cryptocurrency | Blockchain & Cryptocurrency Laws & Regulations.” Freeman Law, freemanlaw.com/cryptocurrency/taiwan/.
