Crypto Regulations in Taiwan: What You Need to Know in 2025

When it comes to crypto regulations in Taiwan, a balanced framework that allows innovation while enforcing anti-money laundering rules. Also known as virtual asset regulation, it’s one of the most pragmatic approaches in Asia—neither a ban nor a free-for-all. Unlike countries that outright prohibit crypto or throw open the doors without guardrails, Taiwan walks a middle path. The Financial Supervisory Commission (FSC) doesn’t license crypto exchanges directly, but it requires them to register as Virtual Asset Service Providers (VASPs) under the Anti-Money Laundering Act. That means if you’re running a crypto platform in Taiwan, you need to verify your users, report suspicious activity, and keep records—but you don’t need government approval to operate.

This system creates a crypto exchange Taiwan, a platform that facilitates trading of digital assets under regulatory oversight. Also known as VASP-compliant exchange, it’s why platforms like BitMEX and Binance have pulled back from direct operations in Taiwan, while local players like Kuna and MEXC have adapted. The rules are clear: no KYC? No service. No AML reporting? You’re out. But if you follow the rules, you can legally offer spot trading, staking, and even fiat on-ramps. And unlike some countries that tax crypto as property, Taiwan treats it as a commodity. Profits from trading are taxable under income tax, but there’s no specific crypto tax form yet—so most people report gains under miscellaneous income.

What about users? If you’re just holding Bitcoin or trading on an offshore exchange, you’re not breaking the law. But if you’re using a local platform or earning income from crypto, you’re in the system. The tax authorities are starting to get serious. In 2024, the National Taxation Bureau began cross-referencing bank transfers with crypto wallet addresses. If you’re making consistent deposits to a crypto exchange and not reporting gains, you’re asking for trouble. There’s no formal reporting requirement yet, but that’s changing. The FSC is working with the OECD on CRS 2.0 compliance, which means Taiwan will soon automatically share crypto transaction data with over 100 countries.

What’s Missing? And What’s Next?

Taiwan doesn’t have a clear legal definition for DeFi, NFTs, or stablecoins. That’s a gray zone. You can buy NFTs, but there’s no rulebook on whether they’re securities or collectibles. You can use USDT to pay for goods, but merchants aren’t required to accept it. And while you can trade crypto on local platforms, there’s no investor protection fund—if an exchange gets hacked, you’re on your own. That’s why most users stick to well-known platforms with strong security and overseas backups. The government knows this gap exists. A draft bill in 2025 proposes a licensing system for crypto exchanges, clearer rules for stablecoins, and mandatory audits for platforms with over NT$100 million in monthly volume. But until then, it’s a wait-and-see game.

What you’ll find below are real stories from people who’ve navigated this system. Some lost money on unregulated platforms. Others found loopholes in the tax code. A few even built businesses around the gray areas. This isn’t theoretical. These are the people living under Taiwan’s crypto rules right now—and what they’ve learned the hard way.