Taiwan is getting serious about regulating cryptocurrency, and the government is moving fast. The Financial Supervisory Commission (FSC) and a lawmaker have each proposed their own version of a “crypto law,” and it looks like this could drastically change the game for crypto businesses in the region.
What’s the Deal with Taiwan’s New Crypto Law?
Taiwan is drafting a special crypto law to bring more control to the crypto space. This new regulation would require all crypto platforms operating in Taiwan to apply for a license — including those based overseas. To comply, foreign platforms would need to set up operations in Taiwan and go through the licensing process.
The lawmaker behind the draft, Huang Shan-shan, hopes to get this bill passed by the end of 2025. Meanwhile, the FSC is gathering public feedback until May 24, and it plans to review the draft by June.
Why Does This Matter?
In simple terms, compliance costs are going to rise for crypto businesses in Taiwan. Right now, companies need to follow anti-money laundering (AML) rules and register their services. But the new law is about to raise the bar, and some say it could make life tough for smaller players.
Crypto lawyer Kevin Cheng warns that even businesses with millions of dollars in capital may struggle to stay afloat once the new law kicks in. That means the barriers to entry are going up, and many smaller firms might not be able to afford it.
What Will This Mean for Smaller Crypto Firms?
Currently, Taiwan’s crypto rules are pretty manageable for smaller businesses. Companies with around NT$30 million to 50 million in capital can still survive under the existing regulations. But with the new law, even companies with NT$300 million to 500 million may find it tough to keep up.
This means smaller players could be squeezed out, as they may not have the resources to meet the stricter requirements.
The Bigger Picture
While the new law will likely push out smaller players, larger, well-established platforms may find it easier to adapt. The hope is that these changes will create a more stable and secure trading environment for investors in Taiwan, but it’s a tough break for the smaller firms that can’t meet the new requirements.
In the end, Taiwan is trying to balance regulation and growth in the crypto space. It’s a tricky task, but one thing is clear: The rules are changing fast, and crypto businesses will need to prepare for a new era of regulations.
Stay tuned as this story unfolds!
