Crypto ATM / kiosk operator in Taiwan

FSC — VASP guidelines and oversight — dedicated law under legislative review

Guiding Principles for Management of Virtual Asset Service Providers (2023) — VASP registration and conduct guidelines (being formalized into law, expected 2025-2026)

VASP: VASP Registration under FSC guidelines (3-6 months). Dedicated VASP law under legislative review. Approach influenced by Japan and Singapore models. MaiCoin and BitoPro are major local players.

CUSTODY: Customer asset segregation required under FSC guidelines

EXCHANGE: VASP registration with FSC; information security management required. Self-regulatory organizations among exchanges. Stablecoin framework under development.

FSC Guidelines and Oversight: The FSC issues guidance (e.g., VASP Application Guidance, AML/CFT Notes, Travel Rule Guidance) and FAQs (latest published November 21, 2025) covering VASP definitions, registration, compliance obligations like AML/CFT systems, audits, and record-keeping, plus supervisory powers including enforcement and risk-based monitoring.

Registration and Status: Over 16 VASPs have been approved since March 2024, with the FSC committing to initial feedback within 6 weeks and decisions within 6 months, though actual timelines vary.

Financial Supervisory Commission (FSC): The primary financial regulator in Taiwan responsible for overseeing financial institutions and has extended its oversight to VASPs regarding AML/CTF.

Regulations Governing Anti-Money Laundering and Countering Terrorism Financing for Virtual Asset Service Providers (虛擬通貨平台及交易業務事業防制洗錢及打擊資恐辦法)

These regulations require VASPs to implement robust internal control systems for AML/CTF, report suspicious transactions, and conduct due diligence.

Custodial License Requirements:

Segregation of Client Assets Rules:

Comprehensive VASP Special Law: The FSC has publicly announced its intention to establish a dedicated and comprehensive regulatory framework for virtual assets, moving beyond just AML/CTF.

Exchange between virtual assets and fiat currencies.

Entity Targeted: David Pan (潘奕hofer), founder of ACE Exchange, and approximately 10 other individuals. Violation Type: Fraud, money laundering, operating an illegal pyramid scheme, organized crime. The group allegedly used fake tokens (NFTC, MOCT) to defraud investors out of hundreds of millions of New Taiwan Dollars. Penalty Amount: Assets worth over NT$200 million (approximately US$6.4 million) were frozen, including real estate, luxury cars, and cryptocurrency. The investigation is ongoing, and final penalties (imprisonment, further asset forfeiture) will be determined by the courts. Outcome: Key individuals, including the founder of a prominent Taiwanese exchange, were arrested. Assets were frozen, and legal proceedings are underway. This was a major blow to investor confidence and highlighted the risks within the unregulated parts of the crypto market.

Entity Targeted: Numerous individuals and groups promoting "Pi Network" as a guaranteed high-return investment or operating multi-level marketing (MLM) schemes based on its unlisted cryptocurrency. Violation Type: Fraud, operating illegal pyramid schemes (violation of the Multi-level Marketing Supervision Act), misleading advertising. Penalty Amount: Varies per case, but includes arrests, asset seizures (though often smaller sums of cash, not directly crypto), and fines/imprisonment upon conviction. Specific aggregate amounts for all Pi Network-related crackdowns are hard to tally as they are localized efforts. Outcome: Numerous arrests across Taiwan, public warnings issued by authorities regarding the risks of Pi Network and similar speculative "investments," helping to protect potential victims.

Entity Targeted: Individuals involved in online romance scams and investment fraud predominantly using Telegram, convincing victims to invest in fake cryptocurrency platforms. Violation Type: Fraud, money laundering. Penalty Amount: Arrests, freezing of bank accounts, and seizure of assets (e.g., millions of NTD in illicit gains). Specific fines and prison sentences are determined post-conviction. One operation in 2023 alone saw NT$110 million (US$3.5 million) in illicit gains seized. Outcome: Multiple arrests, significant amounts of illicit funds frozen or seized, raising public awareness about online investment scams.