TAIWAN Law and Practice Contributed by: Robin Chang, Ken-Ying Tseng and Eddie Hsiung, Lee and Li, Attorneys-at-Law
1.1.5 Industry and Trade Bodies There are no self-regulatory organisations other than the Taiwan Virtual Asset Service Provider Association (the “VASP Association”). A VASP is required to join the VASP Association before it may conduct its VASP- related business in Taiwan. The VASP Association functions as a self-regulatory organisation (SRO) with the primary goal of promot- ing responsible practices and ethical standards within the virtual-asset industry. It is tasked with the devel- opment, implementation, and continuous refinement of self-regulatory standards designed to strengthen industry self-discipline and foster public trust. These standards include comprehensive rules and guidelines covering key areas such as anti-money laundering (AML), anti-fraud measures, and consumer protec- tion protocols, which are critical to maintaining the integrity and security of the virtual-asset ecosystem. In addition to setting industry norms, the VASP Asso- ciation plays an important liaison role by maintain- ing ongoing communication and co-operation with the FSC and other relevant government agencies. Through this engagement, the association not only helps ensure compliance with regulatory expectations but also provides a formalised platform through which the industry can articulate its viewpoints, challenges, and policy recommendations to regulators. 1.2 Crypto-Assets 1.2.1 Property Considerations There are currently no regulatory guidelines or spe- cific statutory provisions in Taiwan that offer a detailed legal analysis concerning the transfer of ownership or transactional finality of digital assets transferred through a blockchain network using a private cryp- tographic key. The legal framework surrounding such transactions remains under-developed, and questions regarding the enforceability of ownership claims or the resolution of disputes involving blockchain-based transfers have yet to be formally addressed by Tai- wanese courts. However, from a practical standpoint, if a digital asset is successfully transferred from one digital wallet to another through the proper use of a private key, such a transaction is generally presumed to be final and valid. Nonetheless, the lack of legal clarity poses potential challenges in dispute resolu- tion.
a blockchain-enabled fund exchange service, and a group-buying platform for bond investments with blockchain as underlying technology. These initiatives highlight the government’s commitment to embrac- ing blockchain technology and creating a regulatory environment conducive to innovation and responsible development in the fintech sector. 1.1.3 Regulation of Blockchain Technology In Taiwan, apart from regulations governing crypto- assets/digital assets, there are no specific standalone regulations governing blockchain technology. From a personal data viewpoint, whether the right to be forgotten indeed exists under the Taiwan’s Per- sonal Data Protection Act (PDPA) is still the subject of debate. However, the PDPA explicitly states that a data subject has the right to request a government or non-government agency to delete his/her personal data If blockchain data truly possesses the “immutabil- ity” characteristic inherent to the technology, it could theoretically conflict with provisions in personal data laws regarding a data subject’s right to deletion as indicated above. However, there is currently no very specific discussion on this conflict within judicial prac- tice. In practice, whether any personal data may be successfully deleted would depend on the individual To the authors’ knowledge, there have not yet been any court decisions in Taiwan that offer detailed analy- sis or legal interpretation regarding the enforceabil- ity of agreements involving digital assets or block- chain-based transactions. As a result, there remains a degree of legal uncertainty in this area. However, based on general principles of contract law, an agree- ment would likely be recognised as legally valid and enforceable as long as there is clear mutual intent by the parties to enter into the agreement, and all other essential elements required for a valid contract – such as offer, acceptance, and legal capacity – are present. Courts would likely evaluate such agreements on a case-by-case basis. products or services. 1.1.4 Smart Contracts
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