Fintech Weekly Report: Taiwan's Crypto User Base Reaches 300,000–500,000

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The fintech landscape in Asia continues to evolve rapidly, with Taiwan emerging as a key player in cryptocurrency adoption, digital banking innovation, and mobile payment expansion. From regulatory insights to major tech integrations, this week’s developments highlight both growth opportunities and emerging challenges across the sector.

Taiwan’s Crypto User Count Hits 300,000–500,000

According to BitoEX Chief Technology Officer Lin Shu-Wei, Taiwan’s cryptocurrency user base now ranges between 300,000 and 500,000 individuals. Speaking at a recent forum on crypto compliance and banking practices, Lin based his estimate on BitoPro’s user count of over 200,000, factoring in off-exchange cash transactions that are common in peer-to-peer trading.

Lin emphasized that the actual volume of crypto trading in Taiwan is significantly underreported. He estimates that off-the-books transactions may be five times higher than those recorded on formal platforms. This discrepancy underscores the need for clearer regulation and improved financial oversight.

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BitoPro, the exchange operated by BitoEX, raised over NT$600 million worth of Ethereum through an ICO earlier this year. Since then, it has begun offering ICO facilitation services to startups, primarily from Japan, Hong Kong, Singapore, and China. While local demand remains modest, Lin notes a growing interest in token-based fundraising. Globally, ICO activity has doubled compared to the same period last year—indicating sustained investor confidence in decentralized funding models.

LINE Enters Taiwan’s Digital Banking Race

On July 26, LINE Financial officially launched its preparatory office in Taiwan with plans to apply for one of only two available pure digital banking licenses. The initiative aims to leverage LINE’s massive user base to drive financial inclusion, expand the fintech ecosystem, and promote cross-border capital collaboration.

Key strategic pillars include:

The preparatory team, led by Liu Yi-Cheng, is actively recruiting talent across IT (including cybersecurity and UX/UI design) and non-technical domains such as fintech compliance and consumer behavior analysis.

This move positions LINE as a serious contender in Taiwan’s evolving digital banking space—a sector expected to see increased consolidation and innovation in the coming years.

Crypto Tax Compliance: A Five-Year Watch Window

Despite regulatory ambiguity, crypto transactions in Taiwan are taxable under current law. As explained by Chu Tsai-Pao of Chumin United Accounting Firm, digital assets are classified as commodities, making any profit from trading subject to income tax.

Chu warns users that the National Taxation Bureau can trace financial flows through bank records and may audit gains made within the past five years—the statutory tax追溯 period. While authorities reportedly "catch the big fish and let the small ones go," unreported profits remain a compliance risk.

Additionally, Chu advises startups considering an IPO to avoid ICOs for now. Major auditing firms like PwC, Deloitte, EY, and KPMG remain hesitant to engage with ICO-related financial statements due to regulatory uncertainty. For companies aiming for public listing, maintaining clean audit trails is essential—making early-stage token sales potentially problematic down the road.

HTC’s Blockchain Phone Gains Litecoin Founder as Advisor

HTC’s blockchain smartphone project, Exodus, has secured Charlie Lee—the founder of Litecoin—as an advisor. The device, expected to launch in Q3, will support decentralized applications (DApps), function as a universal crypto wallet, and enable users to run full nodes for blockchains like Bitcoin and Ethereum.

Lee confirmed via Twitter that Exodus will support both Litecoin (LTC) and Lightning Network transactions using LTC. He believes the secure hardware architecture of the phone will lower barriers to entry for Lightning Network adoption, paving the way for broader scalability of instant micropayments.

With Lee’s technical expertise and HTC’s hardware innovation, Exodus aims to become a flagship device for crypto-native users who value privacy, decentralization, and self-custody.

First-Ever Merger in Taiwan’s E-Payment Sector

In a landmark decision, Taiwan’s Financial Supervisory Commission (FSC) approved the merger between ZiPay (a subsidiary of Lanew Technologies under Gameone Group) and Taiwan Electronic Payment Company. This marks the first consolidation among licensed e-payment operators in Taiwan.

Under the deal:

Gameone Chairman Wang Chun-Bo noted that with six licensed e-payment providers competing in a limited market, consolidation is inevitable. This merger reflects a shift from isolated competition to strategic alliances aimed at improving scale, efficiency, and service integration.

Amazon & SoftBank Target Japan’s Mobile Payment Market

Japan’s cash-heavy economy presents a massive opportunity for mobile payment providers. Currently, cashless payments account for only about 20% of total transactions, including credit cards—leaving significant room for growth.

To capture this market:

Both companies aim to overcome adoption hurdles faced by small businesses reluctant to invest in expensive POS systems—proving that infrastructure support is just as critical as technology itself.

Google Bans Crypto Mining Apps from Play Store

Following Apple’s lead in June, Google has updated its Play Store Developer Policy to prohibit apps that mine cryptocurrency on-device. Affected apps include MinerGate, Crypto Miner, and NeoNeonMiner.

However, remote mining management tools—where computation occurs off-device—are still permitted. The ban responds to widespread abuse where malicious actors trick users into installing mining software disguised as legitimate apps.

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Microsoft also issued a warning about supply chain attacks involving compromised PDF editors. Hackers hijacked font installer packages (MSI files) from a software partner’s server, embedding Monero-mining malware into downloads—an alarming trend highlighting vulnerabilities beyond direct app installations.

Apple Pay Set to Dominate Mobile Wallet Market

According to Juniper Research, global in-store contactless payments will surpass $1 trillion in 2023**, reaching **$2 trillion by 2025. Within this space, OEM-based mobile wallets—like Apple Pay, Samsung Pay, and Google Pay—are expected to lead.

By 2025:

This dominance stems from seamless integration with smartphones, strong brand trust, and expanding merchant acceptance worldwide.

FAQ: Understanding Taiwan’s Fintech Evolution

Q: How many people in Taiwan use cryptocurrency?
A: Estimates suggest between 300,000 and 500,000 users engage in crypto trading or holding, including both exchange-based and peer-to-peer transactions.

Q: Are cryptocurrency gains taxable in Taiwan?
A: Yes. Since crypto is treated as a commodity, profits from trading are subject to taxation. The National Taxation Bureau can audit undeclared income up to five years retroactively.

Q: Why did ZiPay merge with Taiwan Electronic Payment?
A: To consolidate resources amid growing competition among e-payment providers. The merger enhances operational scale and service capabilities under the new brand ezPay Simple Pay.

Q: Can I still manage crypto mining remotely on Android?
A: Yes. While Google bans on-device mining apps, remote management tools that control external mining rigs are still allowed on the Play Store.

Q: What makes HTC’s Exodus phone unique?
A: It supports DApps, runs full blockchain nodes, stores multiple cryptocurrencies securely, and includes support for Litecoin and Lightning Network—making it ideal for advanced crypto users.

Q: Is LINE really becoming a bank in Taiwan?
A: Not yet—but LINE Financial has established a preparatory office and plans to apply for a digital banking license in partnership with local banks.

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Core Keywords

This week underscores a maturing fintech environment—where innovation meets regulation, collaboration replaces isolation, and user protection becomes paramount. As infrastructure evolves and adoption grows, Asia’s role in shaping global fintech trends becomes increasingly influential.