Taiwan Crypto Restrictions: What You Can and Can't Do in 2025

When it comes to Taiwan crypto restrictions, the regulatory framework that governs how individuals and businesses interact with digital assets in Taiwan. Also known as Taiwan cryptocurrency laws, it's not a ban—it's a tight leash. Unlike China or Bangladesh, Taiwan lets you buy, sell, and hold crypto, but only if you play by rules set by the Financial Supervisory Commission (FSC) and the Central Bank. You can’t use Bitcoin to buy coffee at a convenience store, and you can’t run a crypto exchange without a license. The government doesn’t want to stop innovation, but it won’t tolerate shadow markets or unregulated platforms.

That’s why crypto exchange Taiwan, the platforms licensed to operate legally in Taiwan. Also known as regulated crypto platforms, are few and heavily monitored. Only exchanges like BitMEX (before its shutdown), Binance (with restricted services), and local players like Kuna and OSL can legally serve Taiwanese users—and even they must follow strict KYC and AML rules. If you try to use an offshore exchange without proper identity verification, your bank might freeze your account. Banks in Taiwan are required to report suspicious transfers, and they’ve been trained to flag crypto-related activity. The crypto tax Taiwan, the system that treats crypto gains as income subject to progressive personal income tax rates. Also known as Taiwan crypto taxation, doesn’t have a separate crypto tax law, but the tax office treats every trade, airdrop, or staking reward as taxable income. If you bought ETH for $1,000 and sold it for $3,000, you owe tax on the $2,000 gain—even if you didn’t cash out to fiat. No deductions for losses. No grace period. Just like selling stocks, but with more scrutiny. And while crypto trading Taiwan, the act of buying and selling digital assets by individuals or businesses within Taiwan’s legal boundaries. Also known as legal crypto trading, is permitted, it’s not anonymous. Every wallet address linked to a Taiwanese ID or bank account is traceable. The FSC requires exchanges to report large transactions and suspicious patterns to the Financial Information Center. Even airdrops from foreign projects aren’t safe from scrutiny—if you claim tokens, you must declare them.

What you won’t find in Taiwan are unlicensed DeFi platforms, peer-to-peer crypto ATMs, or crypto payment gateways. The government has made it clear: innovation is welcome, but only under supervision. That’s why most locals stick to licensed exchanges, avoid meme coins with no whitepaper, and keep records of every trade. The goal isn’t to stop crypto—it’s to control it. And if you’re thinking about trading or investing in Taiwan, you need to know the rules before you touch a single coin.

Below, you’ll find real stories from people who’ve navigated these rules—some got caught, some avoided trouble, and others found loopholes that didn’t last. These aren’t theoretical guides. They’re lessons from the ground.