Taiwan's Legislative Yuan has passed the Virtual Asset Service Providers Act, establishing a comprehensive regulatory framework for virtual asset service providers (VASPs) and stablecoin issuers. The new law mandates that crypto platforms must obtain approval from the Financial Supervisory Commission (FSC) before operating, adhering to stringent cybersecurity, client asset segregation, and internal control standards. Platforms already registered for anti-money laundering must apply for a license within 12 months and secure FSC approval within 21 months of the law's enactment. Stablecoin issuance and management require dual approval from the central bank and the FSC, with issuers maintaining adequate reserves. Unauthorized operation of VASP or stablecoin businesses can result in up to seven years in prison and fines of up to NT$100 million. Fraud or market manipulation offenses carry penalties of three to ten years imprisonment and fines ranging from NT$10 million to NT$200 million.