When you hear VASP, a Virtual Asset Service Provider, is any company that handles crypto transactions like exchanges, wallets, or custody services. Also known as crypto service provider, it’s not just a label—it’s a legal requirement in Taiwan and many other countries. If you’re trading, holding, or moving crypto in or out of Taiwan, VASP rules affect you directly. This isn’t about bureaucracy—it’s about access, safety, and avoiding fines or blocked accounts.
Taiwan’s VASP framework, enforced since 2021 under the Financial Supervisory Commission, forces crypto platforms to register, verify users, report suspicious activity, and keep records. That means exchanges like MEXC or Bybit operating in Taiwan must follow these rules—or get shut down. For users, this means better protection from scams, but also stricter KYC. You can’t just hop on a platform with a fake ID anymore. The system isn’t perfect, but it’s real. And it’s spreading. Other Asian countries are watching Taiwan’s model closely.
Related entities like AML crypto, anti-money laundering rules that require crypto businesses to track and report large or suspicious transactions, and crypto exchange Taiwan, regulated platforms licensed to operate legally under VASP guidelines are all part of the same system. If you’re using a platform that doesn’t have a VASP license in Taiwan, you’re taking a risk—your funds might vanish if regulators step in. Even if you’re not in Taiwan, if you trade with someone who is, you’re indirectly affected. This isn’t just a local law—it’s a regional shift.
What you’ll find in the posts below aren’t abstract theories. These are real cases: exchanges that got shut down, airdrops that vanished because the platform wasn’t licensed, and users who lost access because their wallet provider wasn’t registered. You’ll see how VASP rules killed off shady platforms, but also how they made life harder for honest traders. No fluff. No guesses. Just what happened, who got caught, and what you need to do to stay clear of trouble.
Taiwan allows crypto ownership but blocks banks from handling it. Learn how 2.3 million users trade crypto without bank access, what VASPs are, and how new stablecoin rules in 2025 could change everything.
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