Taiwan Enacts Comprehensive Crypto Law with Licensing and Penalties

Taiwan has approved a sweeping new law to regulate its cryptocurrency sector, sending the bill to the President for final approval. The law mandates that crypto firms must obtain licenses to operate and maintain reserves to ensure financial stability. Non-compliance will result in significant penalties, including fines and potential imprisonment for executives.

The legislation requires crypto exchanges and service providers to undergo rigorous vetting processes to secure licenses. Firms must also adhere to strict reserve requirements, ensuring they have sufficient assets to cover customer deposits. Penalties for violations include hefty fines and up to five years in prison for executives found guilty of misconduct.

This law is designed to protect investors and bring Taiwan's crypto sector in line with international standards. By imposing stricter regulations, the government aims to prevent financial crimes and enhance consumer trust in digital assets. The move could also position Taiwan as a more attractive market for compliant crypto businesses.

For crypto users in Taiwan, this law means increased protection and transparency. Firms operating under these new regulations will need to demonstrate higher standards of security and financial health. Users should watch for announcements from their preferred crypto platforms regarding compliance with the new law and any changes in service offerings.

Read more → https://www.coindesk.com/policy/2026/07/01/taiwan-s-sweeping-crypto-law-raises-the-bar-with-licensing-reserve-mandates-and-tough-penalties