Virtual Asset Law Sparks Digital Currency Boom in Taiwan

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The proposed Virtual Asset Service Provider (VASP) Act has officially entered the review stage at Taiwan’s Executive Yuan, signaling a pivotal shift in the nation’s financial landscape. With digital currency poised for explosive growth, major conglomerates like Fubon Group and Far Eastern Group are strategically positioning themselves to lead the charge in this emerging market.

This legislative milestone marks the government’s formal recognition of cryptocurrencies as a regulated financial asset class. Once enacted, the VASP Act will establish clear compliance frameworks for crypto exchanges and virtual asset service providers, significantly enhancing transparency, security, and public trust. Beyond just regulating trading platforms, the law will also serve as the legal foundation for stablecoins and central bank digital currencies (CBDCs), paving the way for blockchain-based financial innovation.

👉 Discover how telecom giants are shaping the future of digital finance.

Major Telecoms Enter Web3 Arena

Taiwan Mobile, part of the Fubon Group ecosystem, has taken a bold step by launching TWEX, its own virtual asset exchange operated through subsidiary Fusheng Digital. With over 9 million subscribers, Taiwan Mobile is leveraging its vast user base to democratize access to digital assets.

According to Han Kun-Chu, Deputy General Manager of Taiwan Mobile’s Web3 division and CEO of TWEX, the platform was designed not for seasoned crypto traders but for everyday users—particularly younger generations who may be risk-averse or unfamiliar with blockchain technology.

“Our goal with TWEX is simple: make virtual asset investment accessible with just spare change,” said Han. “We want to create a trusted local brand for the Web3 era.”

TWEX has already attracted institutional interest, including inquiries from small and medium enterprises (SMEs) and private investment firms seeking corporate accounts. This early adoption reflects growing confidence in regulated digital asset platforms.

Meanwhile, Far EasTone, under the Far Eastern Group, has adopted a strategic partnership model by investing in MaiCoin, Taiwan’s largest local cryptocurrency exchange. While full-scale operations await final regulatory approval, Far EasTone is actively exploring integrations between its existing services—such as friDay Wallet and HappyGo points—and blockchain-based payment solutions.

With only about 900,000 active crypto users in Taiwan (roughly 4% of the population), both telecom giants see immense untapped potential. Their combined customer reach exceeds 18 million, offering a powerful distribution channel for mainstream crypto adoption.

Bridging Traditional Finance and Blockchain

The VASP Act’s Chapter Four specifically addresses the issuance and management of stablecoins—digital tokens pegged to real-world assets like the US dollar. Experts believe this provision could be transformative.

Dr. Winston Wen-Hung, Vice Chairman of the Financial Technology Association of Taiwan, explains:

“The VASP Act will act as a bridge between traditional finance and virtual assets. Once compliant stablecoins like USDT or USDC gain legal clarity, they can facilitate fast, secure cross-border payments and open up new economic channels on the blockchain.”

While some stablecoins currently operate in regulatory gray areas, proper oversight will enhance investor protection and prevent money laundering. The law aims to filter out weak or malicious actors, ensuring only robust, transparent platforms survive.

Moreover, established financial institutions are already aligning with this trend. Cathay Financial Holding, through Cathay Asset Management, launched the 00909 Digital Payment Services ETF, which includes exposure to global crypto platforms like Coinbase—the primary issuer of USDC.

Fubon’s backing via Fubon Financial Holdings, and Far Eastern Group’s indirect support through Far Eastern Bank (which handles custodial services for nine out of ten crypto exchanges), further solidify the integration of legacy finance with digital innovation.

👉 Learn how stablecoins are transforming global payments.

From AI Hype to Blockchain Reality

While artificial intelligence dominated headlines in recent months, blockchain and stablecoins are now gaining momentum. The arrival of comprehensive regulation shifts the narrative from speculation to legitimate financial infrastructure.

As Dr. Wen notes:

“We’re moving beyond niche crypto circles. People outside the ecosystem are starting to see digital assets not as speculative tools, but as viable investment and payment options.”

This shift is evident in product design. Platforms like TWEX focus on simplicity—low entry barriers, intuitive interfaces, and micro-investment features—that mirror traditional fintech apps rather than complex trading terminals.

Additionally, telecom companies bring unique advantages:

These assets position them perfectly to onboard millions into Web3 without overwhelming them.

The Road Ahead: A Digital Currency Race Begins

With Fubon, Far Eastern, and Cathay all making moves, Taiwan is witnessing the early stages of a digital currency race. The convergence of telecom infrastructure, financial backing, and regulatory clarity creates fertile ground for innovation.

Global trends reinforce this trajectory. As countries explore sovereign stablecoins and central bank digital currencies (CBDCs), Taiwan’s proactive stance places it among Asia’s frontrunners in crypto regulation.

Experts predict that compliant stablecoins will soon become integral to daily transactions—used for everything from remittances to retail purchases. When combined with 5G networks, AI-driven analytics, and decentralized identity systems, the stage is set for a new era of digital finance.

👉 See how leading platforms are preparing for the next wave of financial evolution.

Frequently Asked Questions (FAQ)

Q: What is the VASP Act?
A: The Virtual Asset Service Provider Act is proposed legislation in Taiwan to regulate cryptocurrency exchanges and digital asset services. It aims to enhance security, prevent fraud, and integrate virtual assets into the formal financial system.

Q: Are stablecoins legal in Taiwan?
A: Currently operating in a gray area, stablecoins like USDT and USDC are expected to gain clearer legal status once the VASP Act is passed and implemented.

Q: Can I buy crypto through my telecom provider?
A: Not yet widely available, but Taiwan Mobile’s TWEX platform is preparing to offer virtual asset services directly to its mobile customers upon full regulatory approval.

Q: How do telecom companies benefit from entering crypto?
A: They expand their financial service offerings, increase customer engagement, unlock new revenue streams, and position themselves at the forefront of Web3 innovation.

Q: Is investing in digital assets safe under the new law?
A: The VASP Act significantly improves safety by mandating compliance, licensing requirements, anti-money laundering measures, and custodial protections for user funds.

Q: Will banks issue their own stablecoins?
A: While not immediate, the VASP Act lays the groundwork for licensed financial institutions—including banks—to issue regulated stablecoins in the future.

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