Taiwan’s Financial Supervisory Commission (FSC) is drafting nine supplementary regulations under the 56-article Virtual Asset Service Act, aiming to finalize and enforce them in the first quarter of 2027 after the law cleared the Legislative Yuan on June 30, 2026. FSC Chairman Peng Jin-lung said on September 2, 2026, that the packages will implement a full licensing regime for seven activity categories—exchanges, trading platforms, transfers, custody, underwriting, lending and a catch-all “others”—with each category requiring its own approval and the FSC as sole regulator. Domestic stablecoin issuers must obtain FSC permission, peg to fiat and hold 1:1 reserves in segregated accounts at domestic financial institutions, while foreign-issued tokens such as USDT and USDC are treated as commodities tradable only on appropriately licensed platforms. The Act replaces the post-2021 AML registration model: existing registered VASPs have 12 months from the effective date to apply for new licenses and a maximum of 21 months to achieve full compliance, new entrants face immediate licensing, and unlicensed operation can bring up to seven years in prison and fines of NT$100 million. Two new AML registrations, TSG Digital Assets and Liminal Taiwan, have restored Taiwan’s registered VASP total from eight to 10, while the FSC plans a phased Travel Rule and has signaled virtual-asset derivatives on the roadmap about a year after the Act launches, aligning the framework with standards already set in the EU, Japan and South Korea.