TAIWAN Law and Practice Contributed by: Robin Chang, Sarah Wu and Eddie Hsiung, Lee & Li
10.12 NFTs Currently, there are no specific laws or regulations pertaining to non-fungible tokens (NFTs), which are commonly structured to represent digital art, music, collectibles, sports cards, photo albums and more. Therefore, the applicable laws and regulations should be determined based on their individual characteris - tics. The most recent discussions surrounding NFTs have focused on what an NFT holder owns or obtains. It is important to review and examine the classification of each individual NFT on a case-by-case basis. Specifi - cally, despite the “non-fungible” nature of NFTs, we cannot completely rule out the possibility of financial laws, such as securities regulations, applying to NFTs or their offerings. 10.13 Stablecoins Under current laws and regulations, stablecoins may, depending on the circumstances, be subject to the Banking Act and/or the E-Payment Act. According to the draft law on virtual assets announced by the FSC in June 2025, there would be relevant provisions regarding stablecoins, including a full reserve require - ment. Responding to the call for “open banking” from indus - try players and experts, the FSC has requested the Bankers Association to establish self-regulatory rules relating to the implementation of open banking in Taiwan. Choosing not to impose mandatory disclo - sure rules on banks, the FSC instead requested the self-regulatory organisation (ie, the Bankers Associa - tion) and the Financial Information Service Co. (FISC) to develop pertinent rules and information security standards for banks to follow. The FSC has instituted a three-phase approach to the implementation of open banking. Phase I, which com - menced in late 2019, permitted the accessibility of public product information by third parties, specifically third-party service providers (TSPs). Phase II involved gaining access to customer data, and according to 11. Open Banking 11.1 Regulation of Open Banking
regulated activity, the same interpretation is likely to apply to cryptocurrency lending. Additionally, as mentioned above, the FSC is con - sidering the introduction of legislation dedicated specifically to cryptocurrencies, with a draft version unveiled in June 2025. This draft law would, among other things, establish a new regulatory category for businesses engaged in virtual asset lending. 10.8 Cryptocurrency Derivatives Derivatives trading could be classified as a regulated activity, even when the underlying assets are crypto - currencies, rather than traditional assets like stocks, interest rates or foreign exchange. 10.9 Decentralised Finance (DeFi) It seems that the Taiwan government has not officially expressed its stance on DeFi activities. However, it is important to consider the classification of DeFi activities on an individual basis, as there are no specific laws or regulations in place to govern or establish a legal framework alongside the growth of DeFi. It is necessary to review existing laws related to banking, trusts and futures to ensure adherence to applicable existing laws and regulations. 10.10 Regulation of Funds Currently, blockchain assets, including bitcoins, may not be invested by funds registered with or approved by the FSC. 10.11 Virtual Currencies The term “virtual asset” is defined in the Crypto AML Registration Regulations and the Crypto AML Regula - tions (as indicated in 2.14 Impact of AML and Sanc- tions Rules ) as a digital representation of value with the use of cryptography, DLT or other similar technol - ogy that can be digitally stored, exchanged or trans - ferred, and can be used for payment or investment purposes. However, virtual assets do not include digi - tal representations of the New Taiwan Dollar, foreign currencies, currencies issued by Mainland China (ie, the PRC), Hong Kong or Macau, securities, and other financial assets issued in accordance with laws. There is no official/separate definition of “blockchain assets” under current Taiwan laws and regulations
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