Crypto License in Taiwan
Overview of Taiwan’s Crypto Regulatory Landscape
Taiwan’s approach to cryptocurrency and digital asset regulation has evolved significantly over the last few years. In 2019, the Financial Supervisory Commission (FSC) began issuing crypto exchange licenses, recognizing the need to regulate cryptocurrency trading platforms. These developments laid the groundwork for today’s landscape, positioning Taiwan as a proactive player in the Asian crypto market.
Regulatory Framework:
FSC oversees licensing and supervision of crypto exchanges and related service providers.
Central Bank of the Republic of China (CBC) monitors money laundering risks and aligns with international AML standards.
AML Act amended in 2021 to explicitly include “virtual asset service providers” (VASPs), enforcing KYC/AML compliance.
As of 2025, Taiwan requires any entity offering crypto exchange services, custody, or brokerage to obtain an FSC-approved crypto license in Taiwan. This aligns with global trends, such as FATF guidelines, and Taiwan’s push to legitimize digital asset services.
Key milestones:
2019: First FSC license issued to Maicoin Exchange.
2021: AML Act revised to cover VASPs.
2023: First wallet/custody licenses approved.
Taiwan continues updating its crypto regulation Taiwan laws, with new guidelines announced in 2024 focusing on cross-border crypto transfers and stablecoins.
Types of Crypto Licenses Available
Taiwan offers various types of crypto licenses, tailored to different business models. Each license enables specific services:
1. Crypto Exchange License
Allows buying, selling, and trading of cryptocurrencies against fiat and other crypto. Operators like Maicoin, BitoPro, and ACE have received this license and must comply with FSC regulations and AML/KYC Taiwan rules.
2. Wallet Provider License
For businesses offering custodial wallet services that store users’ private keys. These require strong IT security, encryption standards, and cold wallet solutions.
3. Broker / OTC License
Enables peer-to-peer crypto trades and OTC desks, often for institutional clients. Must meet AML thresholds and transaction reporting.
4. Custodian License
Granted to firms offering crypto custody for third parties, such as institutional funds. Requires audited systems and insurance coverage.
5. Combined Licenses
Some operators apply for both exchange and wallet licenses, or OTC and broker permissions. Taiwan allows multi-service licenses under one application.
Each license type requires tailored application documents, including service descriptions, risk protocols, and Taiwan crypto compliance plans.
Eligibility and Application Requirements
To obtain a crypto license in Taiwan, applicants must meet a clear set of legal, financial, and operational requirements. These are defined and enforced by the Financial Supervisory Commission (FSC) and are regularly updated in line with international standards, particularly FATF and APG (Asia/Pacific Group on Money Laundering) recommendations.
Legal Entity Requirements
Applicants must first establish a Taiwan-based company, typically in the form of a Limited Liability Company (Co., Ltd.). Foreign ownership is allowed, but:
The company must have a registered office address in Taiwan.
At least one local director or legal representative is required.
All shareholders and directors must pass fit-and-proper assessments, including background checks and financial integrity evaluations.
Taiwan does not permit individuals to apply as sole proprietors for crypto licensing. Only legal entities with a defined governance structure are eligible.
Minimum Capital Requirements
Depending on the license type, the FSC requires paid-up capital to be deposited before application:
| License Type | Minimum Paid-up Capital (TWD) | Approx. in USD |
|---|---|---|
| Crypto Exchange | NT$30,000,000 | ~$950,000 |
| Wallet/Custody Provider | NT$10,000,000 | ~$315,000 |
| OTC/Broker | NT$5,000,000 | ~$160,000 |
These amounts may vary slightly based on annual updates and inflation adjustments by the FSC.
Management and Compliance Personnel
Your application must identify key individuals responsible for day-to-day management and regulatory compliance:
CEO / Managing Director
Chief Compliance Officer (CCO) — must have AML/CTF training and experience
Chief Information Security Officer (CISO) — responsible for cybersecurity policies and data integrity
AML Officer — registered with the Anti-Money Laundering Office of Taiwan
Each person must submit:
Resume and professional qualifications
Criminal background clearance
Declaration of no previous involvement in financial crimes
Internal Policy Documentation
A critical part of the licensing process is preparing internal governance documents. These include:
AML/KYC policy compliant with Taiwan’s AML Act
Customer onboarding and risk classification procedures
Transaction monitoring framework
Internal control system & reporting hierarchy
Cybersecurity and data protection policy (aligned with Taiwan’s Personal Data Protection Act)
Failing to provide tailored and detailed documentation is the top reason for application rejections.
Technical and Infrastructure Readiness
The FSC requires proof that your platform is technically ready to operate securely and efficiently. This includes:
Completed IT system architecture and flow diagrams
Transaction logging and backup mechanisms
Cold/hot wallet risk separation
Secure authentication and user access control
Incident response plan (for hacks, fraud, DDOS)
All systems must undergo an independent audit and a penetration test, conducted by an FSC-accredited third-party vendor.
Step-by-Step Application Process
Navigating the licensing process in Taiwan involves multiple stages. Below is a breakdown of the end-to-end roadmap, from setting up the entity to receiving your official crypto license.
Step 1: Company Incorporation
Set up your Taiwanese legal entity:
Reserve company name with the Department of Commerce (MoEA)
Prepare Articles of Incorporation
Deposit minimum share capital in a local bank
Register for business tax and obtain a Unified Business Number (UBN)
Estimated time: 2–3 weeks
Step 2: Pre-Licensing Compliance Setup
Before applying, prepare all required compliance and operational documents:
Risk-based AML/KYC program
Business plan outlining all crypto services
Organizational structure and job roles
Legal opinion from a Taiwan-based law firm (recommended)
Also, ensure that your technical infrastructure is functional and auditable.
Step 3: Submit Application to the FSC
Your application must include:
Legal company documents
Compliance manuals and internal control plans
Management biographies and certifications
Proof of capital deposit
Independent IT audit reports
The FSC may request in-person interviews or clarifications during review.
Estimated review period: 3 to 5 months, depending on license type and completeness of application.
Step 4: Register with AML Authority
Upon FSC approval, register your business with the Anti-Money Laundering Office (AMLO) to report suspicious transactions. You’ll be assigned a reporting entity ID and gain access to the online STR portal.
You must also submit:
Monthly AML/KYC reports
Large transaction reports (above NT$500,000)
Ongoing transaction monitoring records
Step 5: Public Disclosure and License Activation
Once licensed:
Your company will be listed on the FSC public register of licensed VASPs
You are legally allowed to onboard users and process crypto transactions
You must begin reporting activity within 30 days of license issuance
AML/KYC Requirements and Reporting Standards
Taiwan’s approach to anti-money laundering (AML) and know-your-customer (KYC) compliance is one of the strictest in Asia, especially after amendments to the Money Laundering Control Act in 2021. All crypto license holders are considered “reporting entities” and must implement robust AML/KYC frameworks.
Legal Basis
The main laws governing crypto AML/KYC compliance in Taiwan include:
Money Laundering Control Act (amended 2021)
Counter-Terrorism Financing Act
Guidelines for Anti-Money Laundering and Combating the Financing of Terrorism for Virtual Asset Service Providers (VASPs) – issued by the FSC
Taiwan is also a member of the Asia/Pacific Group on Money Laundering (APG) and aligns its AML rules with FATF (Financial Action Task Force) standards.
Mandatory KYC Procedures
Crypto companies must perform full KYC checks on users based on a risk-based approach:
| Customer Type | Required KYC Information |
|---|---|
| Individuals | Full name, ID/passport, address, source of funds |
| Corporates | Company registration docs, UBO info, directors’ ID |
| High-risk clients | Enhanced due diligence, proof of income, in-person call |
Threshold-Based KYC
Some crypto services (e.g., wallet creation, view-only access) may be allowed without KYC — but only up to a set transaction limit (e.g., NT$30,000/month). Beyond that, full KYC becomes mandatory.
Prohibited Clients
You must screen all users against:
Sanctions lists (UN, Taiwan, OFAC, etc.)
Politically exposed persons (PEPs)
Watchlists for fraud or financial crime
Accounts must be blocked if users match these lists without proper justification.
Ongoing Monitoring & STR Reporting
All VASPs must implement:
Real-time transaction monitoring
Suspicious Transaction Reports (STRs) within 5 working days
Large Transaction Reports (LTRs) for transactions over NT$500,000
Regular KYC record updates (e.g., every 2–3 years or if suspicious activity arises)
Failing to report can result in penalties, license suspension, or criminal liability.
AML Training and Internal Audits
All staff, especially compliance officers, must undergo regular AML training. Companies are also required to conduct independent AML audits annually and submit reports to the FSC.
Costs and Capital Requirements
Getting and maintaining a crypto license in Taiwan involves both initial investment and recurring costs. Understanding the financial commitment is essential for budgeting and investor discussions.
Government and Legal Fees
| Expense | Estimated Cost (NTD) | Approx. in USD |
|---|---|---|
| Application fee (FSC) | NT$150,000 | ~$4,700 |
| Legal entity setup | NT$30,000–50,000 | ~$1,000–1,600 |
| License issuance fee (one-time) | NT$200,000 | ~$6,300 |
| Annual renewal & supervision | NT$100,000–150,000 | ~$3,000–5,000 |
Note: Fees may differ slightly depending on license type and FSC updates.
Capitalization Requirements
Paid-up capital must be deposited before application, and kept at required levels throughout your operations.
| License Type | Paid-Up Capital (NTD) | Approx. USD |
|---|---|---|
| Exchange | NT$30 million | ~$950,000 |
| Custody / Wallet | NT$10 million | ~$315,000 |
| OTC / Broker | NT$5 million | ~$160,000 |
You must submit bank confirmation letters during the application to prove funds are fully paid-in.
Ongoing Compliance Costs
| Item | Estimated Annual Cost (USD) |
|---|---|
| AML officer & compliance team | $25,000–50,000 |
| External audit & IT testing | $10,000–20,000 |
| Legal updates & consulting | $5,000–10,000 |
| Internal training, software | $2,000–5,000 |
Keep in mind: non-compliance fines can go up to NT$10 million ($300,000+), depending on the severity of the breach.
Comparison with Other Asian Jurisdictions
When choosing a base for your crypto business in Asia, Taiwan, Singapore, Hong Kong, and Japan often emerge as leading options. Each offers regulatory clarity to different extents, but their costs, processes, and long-term benefits vary.
Here’s how Taiwan compares to its regional peers:
Taiwan
Regulatory body: Financial Supervisory Commission (FSC)
License scope: Exchange, custody, wallet, broker
Capital required: Moderate (NT$5M–30M)
Processing time: 3–5 months
AML standards: FATF-compliant, strict reporting
Crypto-friendliness: Growing support, especially in Taipei
Ideal for: mid-sized crypto firms, regional exchanges, tech-driven fintechs
Singapore
Regulatory body: Monetary Authority of Singapore (MAS)
License type: Digital Payment Token (DPT) license under PSA
Capital required: S$100K–S$250K+
Processing time: 6–12 months
AML/KYC: Strict; required even for small platforms
Crypto-friendliness: High; regional fintech hub
Ideal for: large institutional players, DeFi protocols, high-volume exchanges
Complexity: Lengthy approval, detailed tech documentation, high local costs
Hong Kong
Regulator: Securities and Futures Commission (SFC)
License type: Virtual Asset Trading Platform (VATP) license
Capital: HK$5M+ (~US$650K)
Processing: 4–8 months
Focus: Institutional trading, STOs
Ideal for: high-end trading desks, security token platforms Limitation: Retail crypto trading is restricted to licensed coins only
Japan
Regulator: Financial Services Agency (FSA)
License: Crypto Asset Exchange Service Provider
Capital: ¥10M+
Processing: 9–12 months
Requirements: Japanese entity, local staff, complex structure
Ideal for: Long-term market players with strong legal teams High barrier to entry, strict market conduct rules
Summary Comparison Table
| Jurisdiction | Capital (USD) | Time to License | Complexity | Ideal For |
|---|---|---|---|---|
| Taiwan | ~$150K–950K | 3–5 months | Medium | Regional exchanges, wallets |
| Singapore | ~$200K–500K | 6–12 months | High | Global fintechs, DEXs |
| Hong Kong | ~$650K | 4–8 months | Medium-High | Security tokens, OTC desks |
| Japan | ~$100K+ | 9–12 months | Very High | Enterprises, long-term projects |
Best Practices for Maintaining Compliance
Once you’ve secured your crypto license in Taiwan, maintaining full compliance is not a one-time task — it’s an ongoing responsibility. Regulatory checks, annual renewals, AML audits, and tech updates are all part of staying legally operational.
Here are essential best practices:
1. Conduct Regular AML Risk Assessments
Taiwan’s FSC expects all licensed entities to perform:
Annual AML risk evaluations
Updates based on new threats or FATF changes
Adjustments to customer risk scoring models
Ongoing staff training with certification
Keep reports well-documented and ready for inspection.
2. Update Technical Security Continuously
Crypto businesses are high-value targets for hackers. You should:
Perform quarterly penetration tests
Maintain cold/hot wallet balance monitoring
Use MFA, transaction signing layers, and anti-phishing tools
Implement incident response plans tested annually
You may also need ISO/IEC 27001 certification for information security management.
3. Submit Reports on Time
Missing a Suspicious Transaction Report (STR) or Large Transaction Report (LTR) can result in fines or license warnings.
Use a compliance calendar to track deadlines:
Monthly AML filings
Annual audit submissions
Regulator questionnaires
Changes in directors or shareholders
4.Maintain Substance and Local Presence
Taiwan’s FSC may revoke your license if you:
Outsource 100% of core functions
Have no staff in Taiwan
Fail to respond to regulator inquiries
Maintain:
A local office address
At least one compliance representative on-site
Staff trained in Mandarin and English (if needed for communication)
5.Work with Local Experts
Retain a Taiwanese law firm or compliance consultant with crypto experience. They can assist with:
License renewals
Taxation strategies
Labor law and HR compliance
New FSC regulations and guidance updates
Risks and Penalties Without a License
Operating a crypto business in Taiwan without an approved license is a serious legal violation. The Financial Supervisory Commission (FSC) has actively enforced crypto regulations since 2020 and is empowered to impose administrative and criminal penalties.
Here’s what you risk if you operate unlicensed:
Legal Penalties
Fines up to NT$10 million (~$315,000 USD)
Order to cease operations immediately
Blocking of domain name, app, or exchange access
Personal liability for directors and shareholders
FSC has already sanctioned several local firms for operating without proper crypto authorization — including banning further activity and freezing assets.
Loss of Banking and Payment Access
Most local banks require FSC approval or crypto license documentation before opening business accounts. Without it:
You cannot open a corporate bank account
Payment processors will reject your services
You may face blocked wire transfers or rejected fiat transactions
Reputational Damage and Client Loss
In Taiwan’s highly regulated financial environment, licensing provides legitimacy. Operating without a license damages:
User trust
Investor confidence
Partnership opportunities
Regulatory relationships
Once publicized, an unlicensed status can permanently impact your brand and future business opportunities.
Criminal Investigations
In severe cases, unauthorized operation may lead to:
Criminal charges under the Money Laundering Control Act
Asset seizures
Arrest of responsible parties for financial misconduct
If your platform experiences a security breach or user fund loss, and you are not licensed — the liability is even higher.
Conclusion — Future Outlook for Taiwan Crypto Regulation
Taiwan is quickly becoming one of Asia’s most structured and forward-thinking jurisdictions for crypto regulation. With the crypto license in Taiwan, companies gain legal clarity, market legitimacy, and access to one of the most stable financial ecosystems in the region.
By 2025, regulators aim to further expand:
Stablecoin oversight
Cross-border crypto transfer controls
Token classification and investor disclosure standards
Closer collaboration with regional watchdogs (e.g., Japan, Singapore)
For crypto businesses, this is both a challenge and an opportunity. Those who adapt early and build compliance into their operations will thrive — and those who ignore it risk losing everything
Help center
Got a question? Get your answer
Quick answers to questions you may have. Can't find what you're looking for? Get in touch with us.
Yes. Operating a crypto exchange, wallet service, OTC desk, or custody platform without an FSC license is illegal as of 2025.
Yes. Foreigners may own a crypto company in Taiwan, but you must form a Taiwanese entity, appoint local directors/officers, and comply with all FSC requirements.
On average, 3 to 5 months depending on the license type and completeness of the application.
Yes. Taiwan is known for its stable regulation, open economy, and active blockchain community — particularly in Taipei. It balances innovation with legal compliance.
Paid-in capital requirements range from NT$5 million (~$160K) for OTC licenses to NT$30 million (~$950K) for full exchange
You’ll be listed in the FSC registry, subject to regular audits, and must file AML reports monthly. You can legally onboard users and operate in Taiwan.
No. Taiwan’s crypto license is local. However, its strong compliance standards help gain trust with international banks and partners.
Get in touch with our experts
Need a quick question answered? Our support team is available to answer any queries seven days a week.