The draft Virtual Asset Service Provider (VASP) Act has officially entered the Executive Yuan’s review stage, marking a pivotal moment for Taiwan’s digital economy. With major conglomerates like Fubon and Far Eastern positioning themselves early, the race to dominate the emerging virtual asset landscape is already underway. As regulatory clarity draws near, digital currency is no longer just a niche investment—it's becoming a mainstream financial tool with transformative potential.
Regulatory Clarity Fuels Market Confidence
On June 27, Taiwan’s Financial Supervisory Commission (FSC) submitted the VASP Act draft for government review, a move signaling that digital assets will now be governed under formal legal frameworks. This legislation aims to regulate cryptocurrency exchanges—officially known as Virtual Asset Service Providers—ensuring greater transparency, security, and investor protection.
Once enacted, the law will serve as the foundation for blockchain-based stablecoins and even Central Bank Digital Currencies (CBDCs), creating a trusted environment for digital transactions. By establishing clear compliance standards, the VASP Act is expected to elevate market credibility and attract institutional participation.
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Telecom Giants Enter the Web3 Arena
Two of Taiwan’s largest telecom operators—Far EasTone (Far Eastern Group) and Taiwan Mobile (Fubon Group)—are leveraging their massive customer bases to enter the Web3 space. With over 9 million subscribers each, these companies are uniquely positioned to onboard everyday users into virtual asset ecosystems.
Taiwan Mobile has taken a bold step by launching TWEX, its own virtual asset exchange operated by FutrueX Digital Ltd. According to Han Kun-Chu, Deputy General Manager of Taiwan Mobile’s Web3 division and CEO of TWEX, the platform was designed not for crypto enthusiasts, but for average consumers who want simple, low-barrier access to digital investments.
“With just spare change, our users can start investing,” Han explained. “Our goal is to make TWEX a trusted local brand in the Web3 era.” The platform has already attracted interest from SMEs and private investment institutions seeking corporate accounts, highlighting growing institutional demand.
Meanwhile, Far EasTone has strategically invested in MaiCoin, Taiwan’s highest-volume cryptocurrency exchange. While full-scale operations await regulatory approval, Far EasTone is currently collaborating with MaiCoin on loyalty programs, integrating blockchain technology into its HappyCash ecosystem. This partnership allows users to transact with BTC, ETH, USDT, USDC, and MAX tokens—enhancing real-world utility for digital currencies.
Stablecoins: Bridging Traditional Finance and Blockchain
One of the most significant aspects of the VASP Act is Chapter 4, which outlines regulations for stablecoin issuance and management. These digital tokens—pegged to fiat currencies like the U.S. dollar—are seen as critical bridges between traditional finance and decentralized economies.
According to Winston Wen-Hung Wen, Deputy Secretary-General of the Fintech Association of Taiwan, the new law will enable trusted stablecoins like USDT and USDC to operate legally within Taiwan’s financial system. Once compliant, they can facilitate secure cross-border payments, instant remittances, and everyday transactions—all while reducing fraud and money laundering risks.
“Stablecoins aren’t just speculative tools—they’re payment rails of the future,” says Wen. “When regulated properly, they create a seamless link between banks and blockchain networks.”
Even if certain stablecoins remain in gray areas globally, their economic role cannot be ignored. For instance, USDT indirectly supports U.S. Treasury markets through reserve holdings, making outright bans unlikely despite regulatory scrutiny.
Why Big Business Is Betting on Crypto
The convergence of telecom, finance, and blockchain isn’t coincidental—it’s strategic. Both Fubon and Far Eastern Groups bring powerful advantages:
- Massive user bases: Over 9 million customers per carrier
- Existing trust and brand recognition
- Integrated digital ecosystems (e.g., payment apps, loyalty points)
- Strong financial backing from affiliated banks and insurers
These strengths allow them to lower entry barriers for new crypto adopters. Consider this: while only about 900,000 people in Taiwan actively participate in crypto—roughly 4% of the population—the potential reach through telecom channels exceeds 18 million users.
Moreover, Fubon-affiliated Cathay Financial has already launched the 00909 Digital Payment Services ETF, which includes stakes in major crypto platforms like Coinbase—the primary issuer of USDC. This shows that financial institutions aren’t waiting; they’re building exposure through regulated investment vehicles.
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The Road Ahead: A Digital Currency Revolution
As global markets embrace blockchain innovation, Taiwan stands at a tipping point. The VASP Act could unlock a wave of financial inclusion, enabling secure peer-to-peer transactions, faster remittances, and new forms of digital ownership.
Experts predict that once local stablecoins are issued under the new law, use cases will expand rapidly—from retail payments to supply chain financing. Telecom providers may soon offer bundled services: mobile plans with built-in crypto wallets or loyalty points redeemable in digital assets.
This isn’t just about speculation—it’s about redefining how value moves in a digital-first society.
Frequently Asked Questions (FAQ)
Q: What is the VASP Act?
A: The Virtual Asset Service Provider Act is a proposed law in Taiwan designed to regulate cryptocurrency exchanges and custodial services. It aims to enhance transparency, prevent money laundering, and integrate digital assets into the formal economy.
Q: Are stablecoins legal in Taiwan?
A: Not yet fully legal, but the VASP Act draft includes provisions for regulating stablecoin issuance. Once passed, compliant stablecoins like USDC or locally issued tokens could become legally recognized payment instruments.
Q: Can I buy crypto through my phone carrier?
A: Not directly yet—but Taiwan Mobile has launched TWEX, a licensed exchange platform linked to its ecosystem. Far EasTone is also partnering with MaiCoin. Full integration may follow after the VASP Act passes.
Q: Is investing in digital currency safe under the new law?
A: The VASP Act significantly improves safety by requiring exchanges to meet strict licensing, reporting, and anti-fraud standards. While all investments carry risk, regulation reduces counterparty and operational risks.
Q: Will telecom companies issue their own cryptocurrencies?
A: While no official announcements have been made, both carriers are exploring blockchain-based loyalty systems. Future tokenized rewards or payment solutions are highly likely.
Q: How does this affect everyday consumers?
A: Consumers will gain easier access to digital assets through trusted brands. Features like micro-investing, instant cross-border transfers, and blockchain-secured identity verification could become standard offerings.
With regulatory momentum building and corporate giants stepping in, Taiwan’s digital currency era is no longer hypothetical—it’s imminent. Whether you're an investor, entrepreneur, or casual tech user, the shift toward a tokenized economy is set to impact everyone.
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