Taiwan's 'Legislative Yuan' has passed the third reading of the 'Virtual Asset Service Act,' officially establishing a regulatory framework for cryptocurrency exchanges and stablecoin issuers. The act mandates that Virtual Asset Service Providers (VASPs) must obtain approval from the Financial Supervisory Commission (FSC) before operating, with stricter requirements for cybersecurity, customer asset segregation, and internal controls. Platforms that have previously completed Anti-Money Laundering (AML) registration will have a 12-month transition period to apply for a license and a 21-month approval deadline. Stablecoin issuers are required to obtain dual approval from the central bank and the FSC, while maintaining full reserve backing. Additionally, the act stipulates that illegal operation of VASP or stablecoin businesses could result in up to 7 years in prison and a fine of up to NT$100 million (approximately $3.14 million USD). Crypto fraud or market manipulation could lead to up to 10 years in prison and a fine of up to NT$200 million (approximately $6.28 million USD). (TheBlock) https://www.(wublock123.com)/news/news-63789