Taiwan to Fully Implement Travel Rule for Domestic Cryptocurrency Transfers Starting October

Taiwan's Financial Supervisory Commission (FSC) has announced its plan to fully apply the Financial Action Task Force (FATF) proposed "Travel Rule" to all domestic cryptocurrency service providers (VASP) starting in October 2026.

A significant feature of this regulatory proposal is the mandatory sharing of customer information regardless of the transfer amount. The proposal is expected to be formally decided after a 30-day public comment period.

Customer Verification and Obligations for VASPs Based on Transfer Amount

Under the new framework, the receiving VASP will be required to match the recipient information provided by the sending party with its own customer data. Additionally, for transactions exceeding 30,000 New Taiwan Dollars (approximately 146,000 yen), further customer verification will be required.

For individual senders, disclosure of date of birth and residential address will be necessary, while corporate senders will need to provide official identification numbers and registered addresses. Since the introduction of AML (Anti-Money Laundering) regulations in 2021, the application of these rules had been postponed due to compatibility issues and technical challenges. However, starting with this domestic application, there are plans to expand the scope to include transfers with overseas platforms by the end of 2027.

Progress in Comprehensive Virtual Asset Legislation and Legal Framework

In July 2026, Taiwan abolished the previous anti-money laundering registration system and passed the "Virtual Asset Service Act," which is based on a licensing system.

The act includes pre-approval requirements for cryptocurrency-related businesses, separate management of customer assets, and strict penalty provisions. Additionally, the issuance of stablecoins will require approval from both the FSC and the Central Bank of Taiwan, along with the maintenance of full reserves. Efforts are being made to enhance the effectiveness of the Travel Rule alongside this comprehensive legal framework.

International Rule Application Status and Taiwan's Position

According to a report by the FATF as of July 2026, 83% of the countries and regions surveyed have completed the legalization of the Travel Rule, but there are global discrepancies in effective operation and enforcement. In this context, Taiwan's approach, which targets all transfers without setting a threshold, is noted for demonstrating a commitment to more strictly adhere to international standards.

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