The rise of digital economies has firmly established blockchain technology and virtual assets as pivotal components of modern financial systems. With the emergence of Web3.0—centered on decentralization, digital democracy, and digital citizenship—the transformation of financial services is accelerating. Taiwan stands at a critical juncture, where strategic positioning in this global digital revolution can pave the way for becoming a leading Web3.0 asset management hub.
In 2023, Taiwan’s Financial Supervisory Commission (FSC) introduced the “Guidelines for Virtual Asset Service Providers (VASPs),” followed by the establishment of the Taiwan Virtual Currency Business Association (VASP Association) in June 2024. These milestones mark significant progress in regulatory clarity and industry self-governance. Building on these developments, Far Eastern Bank’s Bankee digital banking platform conducted a comprehensive “2023 Virtual Asset Survey” to understand user behavior, investment preferences, and regulatory expectations.
This 2024 Bankee Virtual Asset White Paper synthesizes findings from that survey, expert insights, legal analysis, and market trends to provide a holistic view of Taiwan’s virtual asset landscape. The goal? To empower investors, guide industry players, and inform policymakers in shaping a secure, innovative, and globally competitive ecosystem.
Regulatory and Industry Landscape
Virtual assets are no longer speculative novelties—they’re emerging financial instruments reshaping capital markets. Taiwan’s strong tech infrastructure and talent pool position it as a key player in blockchain innovation. However, regulatory evolution remains crucial to harness this potential.
Evolution of VASP Regulation in Taiwan
Taiwan’s approach to virtual asset regulation has evolved progressively:
- 2018: The FSC redefined “virtual currency” and mandated KYC (Know Your Customer) compliance for VASPs opening bank accounts, focusing on anti-money laundering (AML).
- 2019–2021: Strengthened AML/KYC enforcement, requiring regular reporting and on-site inspections.
- 2021: Enactment of the Anti-Money Laundering Measures for Virtual Currency Platforms, obligating exchanges to implement internal controls and suspicious transaction reporting.
- 2023: The FSC released 10 guiding principles for VASPs, including client asset segregation and transparent listing mechanisms—widely seen as the birth of Taiwan’s formal virtual asset framework.
- 2024: Formation of the VASP Association, comprising 24 licensed platforms, to promote self-regulation and combat fraud.
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This phased strategy—starting with AML controls and moving toward self-regulation and dedicated legislation—reflects a balanced approach between innovation and investor protection.
International Regulatory Comparison
While Taiwan advances its framework, global peers offer instructive models:
| Jurisdiction | ETFs | Stablecoins | RWA Issuance | Bank Custody |
|---|---|---|---|---|
| USA | ✅ | ✅ | ✅ | ✅ |
| EU | ✅ | ✅ | ✅ | ✅ |
| Singapore | ✅ | ✅ | ✅ | ✅ |
| Japan | ❌ | ✅ | ✅ | ✅ |
| South Korea | ❌ | ❌ | ✅ | ✅ |
| Taiwan | ❌ | ❌ | Emerging | Under Review |
Taiwan currently lags in permitting ETFs and stablecoin issuance. Yet this gap presents an opportunity: by learning from international best practices, Taiwan can design a clearer, more adaptive regulatory environment that attracts global capital while protecting local investors.
Expert Insights: Shaping the Future of Web3 in Taiwan
To gain deeper perspective, Bankee engaged leading voices across the ecosystem—from regulators and legal experts to entrepreneurs and media pioneers.
戴松志 (David Tai), Deputy General Manager, Far Eastern Bank
“Compliance builds trust. Trust drives adoption.”
David emphasizes that banks’ century-tested risk management and custody expertise make them ideal partners in Web3. By co-developing anti-fraud and AML detection systems with VASPs, banks can act as trusted gatekeepers—ensuring safe on/off ramps and enabling exchanges to focus on innovation.
He advocates for negative-list regulation: instead of restricting what banks can’t do, define red lines (e.g., AML, data privacy), allowing flexibility within those boundaries. This fosters experimentation in areas like tokenized real-world assets (RWA), staking loans, and derivatives.
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鄭光泰 (Arthur Cheng), Founder & CEO, Bito Group
Arthur highlights two priorities: self-regulation and RWA development.
The VASP Association is crafting industry-wide standards for:
- KYC/AML uniformity
- Fraud intelligence sharing platforms
- Cross-entity transaction monitoring
On RWA, he sees vast potential. Tokenizing real estate, art, or equities unlocks liquidity and democratizes access. But success requires:
- Government-backed digitization standards
- Regulatory clarity on asset-backed tokens
- Stronger oversight to ensure transparency
“Taiwan must balance innovation with security to become a global RWA leader.”
劉世偉 (Simon Liu), Founder & CEO, MaiCoin Group
Simon calls for:
- Allowing VASPs to offer derivatives (e.g., perpetual contracts, dual-currency options)
- Enabling financial institutions to custody crypto assets
- Launching a TWD-pegged stablecoin
He notes that while domestic VASPs are restricted, foreign platforms freely offer derivatives—creating an uneven playing field. Leveling it would boost local competitiveness.
Moreover, a regulated TWD stablecoin could revolutionize cross-border trade, reducing FX costs and settlement times for Taiwan’s export-driven economy.
李裕勳 (Richard Lee), Partner, PwC Legal
Richard stresses the need for a dedicated Virtual Asset Management Act, expected by mid-2025. Until then:
- Existing AML frameworks must be leveraged
- Tax and accounting standards need harmonization with international norms (e.g., OECD’s CARF)
- Cross-border coordination is essential—especially with neighboring jurisdictions
He warns that without clear rules on P2P transactions and stablecoin issuance, regulatory arbitrage will persist.
蔡玉玲 (Julia Tsai), Honorary President, Fintech Association of Taiwan
Julia praises Taiwan’s “self-regulation first” model. The VASP Association’s tiered membership—based on capital and employee count—incentivizes growth and compliance maturity.
She believes gradual liberalization—starting with pilot programs—will build confidence. As trust grows, so too can service offerings.
“Taiwan’s collaborative public-private model could become a global fintech benchmark.”
林宇定 (Mike Lin), Co-founder, BlockTempo
Mike urges Taiwan to adopt a pro-innovation tax framework and open licensing for foreign firms. He cites Hong Kong and Singapore as models: clear rules attract global talent and capital.
He also cautions that current guidelines overlook non-exchange players like mining firms and Web3 DAOs. These innovators need regulatory clarity to operate legally—and stay in Taiwan.
Quantitative Survey: Investor Behavior Across Generations
Bankee partnered with National Chengchi University’s Fintech Research Center and Bito Group to survey 3,434 respondents. Key findings reveal generational divides—and opportunities.
Demographics
- Holders: 75.8% male, avg. age 38.5
- Non-holders: Nearly equal gender split, avg. age 40
Familiarity drives participation: holders rate their knowledge at 7.56/10, versus 5.22/10 for non-holders.
Generation Z (1997–2012): The "Crypto Natives"
- 22.4% allocate >50% of portfolio to crypto
- 61.9% use derivatives (vs. 38.7% overall)
- 54.8% invest in meme coins
- 13.8% invest only in crypto
Z世代 are risk-tolerant, self-reliant learners who value speed and innovation.
Millennials (Y Generation, 1981–1996): The Core Investors
- 51% ownership rate—the highest among generations
- Familiarity index: 5.23/10 (top among all)
- Investment intent: 6.56/10
They view crypto as both a financial tool and a technological revolution.
Gen X (1965–1980): The Wealth Builders
- 3.2% hold >NT$10M in crypto
- 4.3% have >10 years of experience
- Highest income bracket represented
Long-term holders with deep market knowledge.
Baby Boomers (1946–1964): The Safety Seekers
- 92.6% prioritize platform security
- 82.9% want financial-grade regulation
- 68.5% would invest more if banks offered crypto services
Trust in traditional finance remains strong.
Frequently Asked Questions
Q: Is investing in virtual assets legal in Taiwan?
A: Yes. While full licensing is pending, VASPs operating under AML guidelines are permitted to serve customers.
Q: Can banks in Taiwan custody crypto assets?
A: Not yet officially—but collaboration between banks and VASPs on secure custody solutions is actively being explored.
Q: Will Taiwan allow crypto ETFs or derivatives?
A: Currently prohibited for domestic platforms, but experts recommend gradual liberalization to remain competitive.
Q: How are crypto gains taxed in Taiwan?
A: As of 2024, no specific tax regime exists—but one is under development to align with OECD standards.
Q: What is RWA, and why does it matter?
A: Real World Asset tokenization turns physical assets into tradable digital tokens—unlocking liquidity and new investment channels.
Q: How can investors protect themselves from scams?
A: Use regulated platforms, enable two-factor authentication, avoid unsolicited investment offers, and verify smart contracts.
Conclusion & Recommendations
Taiwan stands at a pivotal moment in its digital finance journey. To become a global Web3 leader, we recommend:
- Empower Financial Institutions: Leverage banks’ risk management strengths for custody, compliance, and trusted on/off ramps.
- Advance Regulatory Clarity: Enact the Virtual Asset Management Act by 2025, with clear rules on stablecoins, derivatives, and RWA.
- Foster Innovation with Guardrails: Adopt negative-list regulation and regulatory sandboxes to encourage safe experimentation.
- Strengthen Investor Education: Partner with universities and media to build public understanding of risks and opportunities.
- Engage Globally: Align with international standards (OECD, FATF) and attract foreign capital through transparent policies.
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By uniting government, industry, and academia around a shared vision, Taiwan can transform its digital economy—and emerge as a trusted hub for the future of finance.
This white paper is based on research conducted by Far Eastern Bank Bankee in 2024. Data sources include expert interviews, regulatory analysis, and a nationally representative survey.