Taiwan's Financial Supervisory Commission published draft amendments on August 4 that would require virtual asset service providers to exchange customer information on every domestic cryptocurrency transfer, regardless of the transaction size. The agency said the new requirements are expected to take effect in October 2026 for transfers between Taiwanese platforms, with a separate phase extending to international transfers by the end of 2027.
The proposal emerged after years of practical failure. Taiwan had incorporated Travel Rule provisions into its anti-money laundering regulations in June 2021, but those requirements were never put into practice. The FSC cited three reasons for the delay: differences in regulatory approaches across jurisdictions, incompatible information-sharing standards between platforms, and the technical difficulty of connecting cross-border systems. Five years after writing the rules, the agency acknowledged the mechanism had not yet been implemented.
What the new rules require and how the threshold works
Under the draft amendments, all domestic VASP-to-VASP transfers trigger the basic Travel Rule obligation regardless of value. That baseline requires the transmission of sender and recipient names alongside a wallet address or transaction identification number.
For transfers above 30,000 New Taiwan dollars, approximately $930, the requirements become more detailed. If the sender is an individual, the originating platform must also transmit the customer's date of birth and residential address. If the sender is a legal entity, the platform must provide the company's official identification number and registered business address.
The receiving platform takes on a new obligation under the proposal. When a transfer exceeds the NT$30,000 threshold, the receiving VASP must verify that the beneficiary information transmitted by the originating platform matches its own customer records before the transaction is completed. That verification step did not exist in Taiwan's 2021 framework.
The draft was opened for a 30-day public consultation period before any final rules are adopted, meaning the October implementation date is subject to the outcome of that process.
The domestic-first approach and the 2027 extension
The FSC and the Virtual Currency Commercial Association of the Republic of China reached consensus on a phased rollout after multiple rounds of discussion following Taiwan's completion of its VASP anti-money laundering registration list in September 2025. Phase one covers transfers between domestic platforms. Phase two, expected by the end of 2027, extends the same framework to transfers between Taiwanese platforms and overseas VASPs.
The FSC said the staged approach reflects the time needed for system integration and operational adjustments on the international side. Cross-border Travel Rule compliance requires compatible technical standards between platforms in different jurisdictions, and those standards have remained a global challenge. According to the Financial Action Task Force, 83% of surveyed jurisdictions have now enacted Travel Rule legislation as of July 2026, up from 73% in 2025. The FATF noted that despite this legislative progress, practical implementation and enforcement remain uneven across countries.
The broader regulatory framework the Travel Rule fits into
The Travel Rule amendments arrive within a regulatory structure that changed substantially in 2026. Taiwan passed the Virtual Asset Service Act in July, replacing the previous AML registration model with a full licensing regime. Under the new law, crypto exchanges, custodians, transfer providers, and other virtual asset businesses must obtain FSC approval before operating. Firms previously registered under the AML framework received a transition period to secure full licenses.
The Virtual Asset Service Act also introduced rules specifically for stablecoin issuers. Companies seeking to issue stablecoins in Taiwan must obtain approval from both the FSC and Taiwan's central bank, maintain fully backed reserves held in trust, and submit to audits and public disclosure requirements. The central bank's formal role in stablecoin oversight was a direct response to earlier calls from the institution itself, which had argued that reserve management and payment system risks required its direct involvement alongside the financial regulator.
Criminal penalties under the Act replaced what had previously been a largely AML-focused compliance framework. Unlicensed crypto activity, illegal stablecoin issuance, fraud, and market manipulation now carry specific statutory consequences.
Taiwan's crypto regulatory activity over the past year also extended to asset custody. In December 2025, the Ministry of Justice disclosed it held 210.45 BTC and other cryptocurrencies seized during criminal investigations, including Ethereum, stablecoins, BNB, and Tron. The disclosure prompted a legislative debate after lawmaker Ko Ju-Chun urged policymakers to evaluate whether Bitcoin could serve as part of Taiwan's strategic reserves.
Roman Zaika
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that, despite the nature of much of the material created and hosted on this website, HODL FM operates as a media and informational platform, not a provider of financial advisory services. The opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice, HODL FM strongly recommends contacting a qualified industry professional.
