Taiwan’s Legislative Yuan has passed the Virtual Asset Service Provider Act through its third reading, marking a major step in the country’s effort to establish a formal regulatory framework for virtual asset businesses.

Legislator Ko Ju-Chun described the vote as an important moment for Taiwan’s financial sector, saying the law signals the country’s entry into a new stage of digital finance. 

He also said the measure, together with Taiwan’s AI Basic Act, would help shape the development of AI-related financial services.

The legislation introduces requirements covering customer asset segregation, information disclosure, and rules for the listing and delisting of virtual assets on trading platforms. 

It also includes oversight related to stablecoins and derivatives, with Ko calling for regulators to continue addressing new products and services in line with international standards.

“The spirit of this bill is clear. Fraud prevention is not meant to stifle innovation, nor should innovation sacrifice the safety of people’s property,” Ko said.

Ko thanked lawmakers from multiple parties, the Financial Supervisory Commission, the Central Bank, the Ministry of Finance, the Ministry of Justice, the Judicial Yuan, police authorities, and other agencies involved in advancing the legislation.

He said the passage of the bill was the result of cooperation among the executive branch, legislature, industry, and society, adding that he would continue monitoring the development of related subsidiary laws.

“After today, we will no longer just ask what are virtual assets. Taiwan will begin to answer how responsible digital finance can go from Taiwan to the world,” Ko said.

He closed his remarks by saying, “don’t trust, just verify.”