Techb News founder Alma recently visited Taiwan, China, where she interviewed the founding chairman of the Taiwan Bitcoin and Virtual Assets Development Association and head of the Financial Technology Department at Hengye Law Firm, lawyer Lin Hongyu. As a seasoned legal expert with years of experience in the virtual asset field, lawyer Lin not only shared the founding intentions and development history of the association but also provided an in-depth analysis of the scale, regulatory dynamics, innovative explorations, and future challenges of the virtual asset industry in Taiwan, presenting a panoramic view of the virtual asset industry in the region.
Association Founding: Centered on Bitcoin, Promoting Industry Compliance and Development
When discussing the founding of the Taiwan Bitcoin and Virtual Assets Development Association, lawyer Lin Hongyu recalled that the association was established in 2021, coinciding with the peak of the previous cryptocurrency market cycle. His own connection to virtual assets began during the ICO boom in 2017, and since then, he has been providing legal services in the virtual asset field, accumulating years of industry experience.
The unique naming of the association, which lists "Bitcoin" separately, reflects lawyer Lin's profound understanding of the industry. He believes that Bitcoin is the "mother of all virtual assets," and its healthy development is crucial for the entire industry. "If Bitcoin performs well, the entire ecosystem will benefit; conversely, the industry may gradually shrink." Based on this philosophy, the association aims to promote the development of Bitcoin policies in Taiwan as a key goal, while also striving to facilitate the compliant development of the virtual asset industry, the construction of the rule of law, and the dissemination of correct understanding.
Over the past four years, the association has achieved significant results. Its primary task has been to promote the establishment of a self-regulatory mechanism for the virtual asset industry in Taiwan and to build a communication bridge with relevant government departments. After three years of effort, it successfully facilitated the establishment of the "Virtual Currency Business Association" in Taiwan. Additionally, the association continues to provide expert opinions on Bitcoin-related development strategies, such as promoting the establishment of Bitcoin ETFs and specific virtual asset laws, aiming to align Taiwan's virtual asset industry with international standards.
Industry Scale: Grassroots Beginnings, Active Users, and a Thriving Developer Community
The cryptocurrency industry in Taiwan started at the grassroots level. As early as 2013, a unique phenomenon emerged globally—people could directly purchase Bitcoin and other crypto assets at convenience stores. Lawyer Lin Hongyu humorously mentioned that his first purchase of cryptocurrency was made at Hi-Life, and this convenient purchasing method allowed Taiwan's crypto community to show early signs of activity.
Currently, the number of active cryptocurrency users in Taiwan is estimated to be between 1 million and 1.5 million. In terms of penetration, compared to the local securities market's approximately 9.5 million stock investors (accounting for 40% of Taiwan's 23 million population), the penetration rate of cryptocurrency users remains relatively low, but community participation is quite deep. A typical example is that Taiwan was one of the hardest-hit areas during the FTX collapse, ranking seventh globally in terms of losses, which indirectly reflects the deep involvement of Taiwanese users in crypto investments.
On the developer side, Taiwan has an active blockchain developer community, covering public chains like Ethereum and Solana, and has attracted many digital nomads. However, in terms of regulation, Taiwan takes a cautious approach to contracts and derivatives trading, with compliant platforms primarily focusing on spot trading. Statistics show that 84% of crypto assets flow to overseas derivatives exchanges for more complex trading operations, reflecting Taiwan's deep connection with the international crypto market.
Bitcoin ETF Progress: From Restrictions to Easing, Local Issuance Still Requires Time
Since 2024, the global development of Bitcoin ETFs has surged, with the U.S. approving a Bitcoin spot ETF in January, followed by Hong Kong approving Bitcoin and Ethereum spot ETFs in April, and the U.S. further relaxing related policies in July. However, Taiwan's progress on Bitcoin ETFs has been relatively slow, influenced by local regulatory considerations.
Lawyer Lin Hongyu explained that Taiwan's Financial Supervisory Commission (FSC) views Bitcoin as a high-risk, highly volatile speculative asset, concerned that local citizens may struggle to bear its price fluctuations. In early 2024, the FSC completely prohibited citizens from investing in overseas Bitcoin ETFs through "sub-delegation" via brokers. However, through the joint efforts of the association, experts, and local legislators, the FSC eventually eased restrictions, allowing the purchase of U.S. Bitcoin ETFs through sub-delegation and planning for continued openness.
Currently, the association is promoting its second phase goal—local issuance of Bitcoin ETFs, dual-currency ETFs, or comprehensive virtual asset ETFs in Taiwan. However, achieving this goal will take time. "This requires amending local administrative orders and regulations, and the specific virtual asset law has not yet gone through Taiwan's legislative process, with progress expected by 2026," lawyer Lin stated.
Corporate "Treasury" Strategy: Traditional Enterprises Lead the Way, Tech Companies May Become Future Mainstays
Globally, many companies in the U.S. and Hong Kong have accumulated Bitcoin, Ethereum, and other assets through "treasury" strategies. In Taiwan, this trend was not prominent during the last bull market, but the situation has changed in the current bull market, with two local listed companies announcing their attempts at similar strategies.
The first is Da Feng Television, a company operating limited cable channels and broadband services in New Taipei, which has a stable cash flow and user base, planning to purchase Bitcoin as a long-term reserve asset in a manner similar to Tesla. The second is Zhihong Technology, which adopts MicroStrategy's "flywheel strategy" by indirectly investing in Bitcoin-related assets through purchasing corporate bonds. Both companies are medium-sized enterprises among Taiwan's listed companies, with stable cash flow and a high acceptance of emerging assets.
Regarding the reasons for these two companies taking the lead, lawyer Lin Hongyu analyzed that Da Feng Television's stable cash flow enables it to try new assets, while Zhihong Technology aims to enhance market competitiveness through innovative strategies. "After their announcements, stock prices saw a significant increase in the first two days, but due to Bitcoin's recent price stabilization, there was a subsequent correction." He also predicts that as Taiwanese tech companies generally hold substantial cash positions and face foreign exchange loss pressures, more companies may follow suit in the future, especially in cash-rich sectors like technology and semiconductors.
Regulatory System: FSC Oversees Regulation, Banks Pilot Custody Services
Unlike Hong Kong, where the Securities and Futures Commission regulates licenses and the Hong Kong Monetary Authority oversees banks, Taiwan's financial industry and virtual asset platforms are regulated by the local FSC, with different internal departments responsible. Notably, Taiwan's exploration in the virtual asset custody field is even more advanced than that of the U.S.—the FSC has allowed local traditional financial institutions to pilot virtual asset custody services.
Currently, Taiwan's Federal Bank, China Trust, Cathay United Bank, and KGI Bank have announced the initiation of virtual asset custody trials. This means that in the future, Taiwanese citizens will not only be able to deposit New Taiwan Dollars in banks but also entrust their crypto assets to local traditional financial institutions for safekeeping, laying an important foundation for the integration of virtual assets and traditional finance.
However, the specific virtual asset law in Taiwan has not yet been officially implemented but has entered a critical stage. Lawyer Lin Hongyu explained that the law is being advanced in two phases: the first phase, in 2023, was jointly promoted by the association and Taiwan's ruling party, proposing a draft of the "Virtual Asset Institution Management Regulations," which was paused after its first reading in the local Legislative Yuan due to a change in legislators; the second phase, led by the FSC, submitted a new draft to Taiwan's Executive Yuan in September 2024, which is expected to be reviewed in the next Legislative Yuan session and may pass by the end of the year.
In terms of content, the specific law will adopt a licensing system covering five types of businesses: fiat and virtual asset exchanges, exchanges between virtual assets, virtual asset transfers, custody, and related financial product services. Regulatory targets include matching exchanges, over-the-counter (OTC) traders, financial underwriters, and stablecoin issuers. Notably, the specific law will include New Taiwan Dollar stablecoins under regulation, encouraging the development of stablecoins pegged to the New Taiwan Dollar, which has become a significant highlight of Taiwan's virtual asset regulation.
Exchange Regulation Transformation: From Registration to Licensing, Compliance Thresholds Raised
Previously, Taiwan adopted a registration system for virtual asset exchanges, managed in conjunction with industry self-regulatory mechanisms. Since the implementation of anti-money laundering regulations for virtual assets in 2021, the number of registered exchanges peaked at 27, but after regular reviews and regulatory updates by the local FSC, only 8 remain. Reviews primarily focus on registration documents and actual business execution, with non-compliant exchanges being delisted.
With the advancement of the specific virtual asset law, Taiwan's regulation of exchanges will transition from a registration system to a licensing system. Lawyer Lin Hongyu emphasized that existing exchanges must reapply for licenses and cannot automatically convert, reflecting the local regulatory authority's higher requirements for public funds and transaction safety. Currently, the main compliant exchanges in Taiwan include BitoPro and Maicoin/Max, which hold about 90% market share and have established fiat deposit channels with local banks, gaining support at the banking level.
New Taiwan Dollar Stablecoin: Regulatory Exploration Ahead, Application Scenarios Await Clarification
The New Taiwan Dollar stablecoin is seen as a significant highlight of Taiwan's virtual asset specific law. According to the draft law, the New Taiwan Dollar stablecoin is included in the licensing scope, limited to payment-type stablecoins pegged to the New Taiwan Dollar and backed by liquid assets, and must be issued on public chains rather than consortium or private chains.
However, the current positioning of stablecoins in Taiwan remains unclear. Lawyer Lin Hongyu analyzed that potential application scenarios may include being a pricing unit for virtual asset trading, cross-border remittances, or pricing needs for Taiwanese businesses. "Especially in the semiconductor industry, if the New Taiwan Dollar stablecoin can become the pricing unit for international trade in semiconductors, it will have enormous potential."
At the same time, Taiwan's central bank is also exploring central bank digital currency (CBDC), including wholesale and retail types. This makes Taiwan the only region globally promoting both CBDC and commercial stablecoins. "Whether the two will conflict remains to be seen, but we hope stablecoins can find clear scenarios in compliant trading, cross-border payments, and the virtual asset industry," lawyer Lin stated.
In terms of market prospects, current U.S. dollar stablecoins (such as USDT, USDC) dominate both globally and in Taiwan, holding over 90% market share. The New Taiwan Dollar stablecoin will face significant competitive pressure in the future. Its primary task is to become the pricing unit for compliant exchanges in Taiwan, supporting spot and derivatives trading. Regarding the number of licenses, referencing Hong Kong's expected issuance of 3-4 licenses, Taiwan may have a similar or even smaller number, with the specific quantity depending on local regulatory intensity and market development.
Client Pain Points and Regulatory Attitudes: Compliance Challenges Prominent, No Ban on "Treasury" Strategy
As a seasoned lawyer in the virtual asset field, lawyer Lin Hongyu candidly stated that the main issue clients face is compliance challenges. Especially after the FSC raised review standards, many smaller exchanges have been delisted due to insufficient user numbers. Additionally, international virtual asset platforms still face policy uncertainties when trying to establish compliance in Taiwan, with the compliant list primarily consisting of local exchanges.
Regarding the adoption of the "treasury" strategy by listed companies in Taiwan to invest in virtual assets, local regulations do not prohibit this, making the actions of Da Feng Television and Zhihong Technology legal. The FSC maintains a neutral stance, neither encouraging nor prohibiting such actions. "In the future, as more Taiwanese tech companies focus on virtual assets, this strategy may gradually become popular, but currently, the local government's policy focus remains on the semiconductor and AI industries, with virtual assets not yet a priority," lawyer Lin summarized.
In this interview, lawyer Lin Hongyu, with his extensive industry experience and professional legal perspective, clearly presented the development trajectory and future direction of the virtual asset industry in Taiwan. From the association's efforts to promote industry development to the unique ecology of the local market and the gradual improvement of regulatory policies, Taiwan's virtual asset industry is steadily advancing through exploration, and the future is promising.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
