Taiwan VASP: What It Means for Crypto Users and Exchanges

When you hear Taiwan VASP, a Virtual Asset Service Provider regulated under Taiwan’s Financial Supervisory Commission. Also known as crypto exchange license, it’s the legal gateway for any platform offering trading, custody, or conversion of digital assets in Taiwan. This isn’t just paperwork—it’s a full compliance overhaul that forces exchanges to prove they can protect users, report suspicious activity, and lock down their systems.

Taiwan VASP requirements tie directly to global anti-money laundering rules. Exchanges must verify every user’s identity, track all transactions above a certain amount, and keep records for at least five years. If they don’t, they’re shut down. That’s why big platforms like Binance and Bybit either left Taiwan or built separate legal entities to comply. For users, this means fewer shady platforms—but also fewer choices. You can’t just sign up with any app anymore. The ones still operating are the ones that passed audits, hired compliance teams, and changed their entire business model.

It’s not just about exchanges, either. crypto custodians, companies that hold digital assets on behalf of clients now need their own VASP license. Wallet providers, staking services, even token issuers doing public sales in Taiwan are being pulled into the same net. The government isn’t trying to kill crypto—it’s trying to clean it up. And that’s why you’ll see posts below about failed exchanges, scam tokens, and airdrops that vanished: they all operated outside the rules. Taiwan’s system doesn’t tolerate anonymity, ghost teams, or fake trading volumes. If your project can’t prove it’s real, it’s gone.

You’ll find stories here about exchanges that collapsed because they ignored these rules, airdrops that turned out to be phishing traps, and how users lost money by using unlicensed platforms. These aren’t random failures—they’re direct results of operating without a VASP license. The posts below show what happens when crypto runs into real-world regulation. And if you’re in Taiwan—or planning to trade with Taiwanese users—this is the framework you need to understand. No fluff. No guesses. Just what’s legal, what’s not, and what you should avoid at all costs.