Security Token Regulations Taiwan: What You Need to Know

When navigating security token regulations Taiwan, the rules that govern how digital securities are issued, traded, and reported in Taiwan. Also known as Taiwan security token rules, these guidelines sit at the crossroads of financial law and blockchain tech, shaping everything from token design to investor protection.

Key Elements of Taiwan’s Security Token Landscape

One of the first hurdles for any token project is VASP registration, the mandatory licensing process for virtual asset service providers operating in Taiwan. Without a VASP licence, a platform can't legally facilitate token sales, custody, or exchange services. The registration demands detailed AML/KYC procedures, capital thresholds, and regular reporting to the Financial Supervisory Commission (FSC). In practice, this means token issuers must partner with a licensed VASP or obtain the licence themselves before hitting the market.

The stablecoin framework, Taiwan’s draft rules for pegged digital assets, directly impacts security tokens that aim to integrate stablecoin collateral, sets clear capital reserve requirements and audit standards. By defining how a stablecoin must be backed and disclosed, the framework forces token creators to be transparent about asset backing, reducing speculative risk for investors. This clarity also helps regulators differentiate between securities and utility tokens, smoothing the path for compliant offerings.

Another piece of the puzzle is the upcoming CBDC Taiwan, the central bank digital currency project led by the Central Bank of the Republic of China (Taiwan). While the CBDC itself is not a security, its rollout creates an ecosystem where digital money is trusted and regulated. Security token platforms can leverage the CBDC for settlement, benefiting from faster finality and lower fees. The interplay between the CBDC and security token regulations shows how monetary policy and securities law can reinforce each other.

Beyond these major entities, Taiwan’s securities law adds another layer of compliance. The Securities and Futures Act (SFA) treats many token offerings as securities, requiring prospectus filing, disclosure of token economics, and investor suitability checks. Projects that miss these steps risk enforcement actions, fines, or forced token swaps. Aligning token design with SFA provisions ensures that issuers stay on the right side of the law while maintaining investor confidence.

Putting it all together, Taiwan’s security token regulations create a structured environment where VASP registration, stablecoin oversight, and the emerging CBDC each play a distinct role. The regulations demand transparency, robust AML/KYC, and clear asset backing, while also offering a modern infrastructure for digital asset settlement. Below you’ll find a curated collection of articles that break down each of these components, share practical compliance tips, and keep you updated on the latest policy shifts.

Ready to dive deeper? The posts that follow unpack the details, from filing a VASP licence to navigating the stablecoin draft and understanding how the CBDC could shape token trading in Taiwan.