VASP Taiwan: What You Need to Know About Crypto Regulations in Taiwan
When you hear VASP, a Virtual Asset Service Provider, is any business that handles crypto transactions like exchanges, wallets, or custody services. Also known as crypto service provider, it's not just a technical term—it's a legal requirement in Taiwan for anyone handling digital assets. If you're trading, investing, or running a crypto business in Taiwan, you're dealing with VASP rules whether you realize it or not.
Taiwan’s Financial Supervisory Commission (FSC) started requiring VASP registration in 2021, and by 2025, the rules are tighter than ever. Only registered VASPs can legally offer crypto services—no exceptions. That means if you’re using a foreign exchange like Bybit or Binance, and you’re in Taiwan, you’re technically using a platform that isn’t licensed locally. Many users still do it, but they’re taking a risk: accounts can be frozen, funds blocked, or even reported to authorities. Meanwhile, local exchanges like Kuna and Tokenlon have gone through the full licensing process and operate under strict AML and KYC rules. This isn’t just about compliance—it’s about safety. Unlicensed platforms have no legal obligation to protect your money if things go wrong.
It’s not just exchanges that fall under VASP rules. Wallet providers, crypto ATMs, and even peer-to-peer platforms that facilitate trades for profit are now classified as VASPs. If you’re building a tool that connects buyers and sellers of crypto in Taiwan, you need to apply for a license. The FSC doesn’t just check your code—they look at your team, your financial controls, your audit history, and how you handle user data. And if you’re a regular user? You’re not required to register, but you’re expected to use only licensed services. That’s why you’ll see more Taiwanese exchanges requiring ID verification upfront now—because they have to.
What does this mean for you? If you’re a trader, stick to platforms that clearly say they’re licensed by Taiwan’s FSC. If you’re a developer or entrepreneur, don’t assume you can launch a crypto app without legal review. And if you’ve heard rumors about Taiwan being a crypto haven? That’s outdated. The island is moving toward being one of Asia’s most regulated crypto markets—not the least. The goal isn’t to stop innovation; it’s to stop scams. And in 2025, the difference between a real crypto service and a fraud is often just a license number.
Below, you’ll find real-world examples of how VASP rules affect exchanges, users, and even token projects operating in Taiwan. Some posts show how platforms got shut down for skipping compliance. Others explain how traders adapt. None of them are theoretical—they’re all based on what’s actually happening on the ground.