Taiwan Considers New Crypto Act That Could Impact Smaller Players
Taiwan is considering legislation that would require all crypto platforms to be licensed. The proposed regulations could push small and mid-sized companies to the brink.
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Taiwan’s government is reviewing a new bill that would mandate licensing for all cryptocurrency platforms operating in the country, including foreign providers.
Some experts say the proposed requirements could be too demanding for small and mid-sized firms. If the law passes, many may be forced to exit the local market.
Related: Cryptocurrency Regulations in Taiwan
Officials have openly stated that the bill is intended to bring stricter regulations to the crypto sector. In their view, the new rules aim to serve two key purposes:
- Improving user protection
- Attracting more institutional investors to the market
However, experts argue that the high cost of compliance, including licensing, legal support, and other requirements, could create serious obstacles for small and mid-sized crypto businesses.
According to The Block, Kevin Cheng, secretary general of the Taiwan Fintech Association, believes the proposed rules could pose challenges even for large firms with $300 million to $500 million in capital, making survival even harder for smaller players.
Meanwhile, legal expert Eddie Hsiung adds that the expanded compliance demands would drive up operating costs significantly. As a result, crypto startups and smaller exchanges could find themselves at a disadvantage, giving larger companies a dominant edge and limiting opportunities for fair competition.
Related: Taiwan to Introduce Institutional Crypto Custody Services
Impact of the Bill and Community Response
The proposed bill could have a major impact on both existing and emerging crypto companies in Taiwan. Under the current system, registration and compliance with anti-money laundering (AML) regulations are generally sufficient. However, the new legislation would introduce much stricter standards, more in line with those applied to traditional financial institutions.
This shift could force smaller companies to either leave the market or merge with larger firms through aggressive acquisitions.
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