Financial Supervisory Commission’s New Regulations on VASP Registration
The Financial Supervisory Commission (FSC) last year added the VASP registration system, with March 31 marking the final deadline for 23 virtual asset service providers (VASPs) that had completed their compliance declarations under anti-money laundering laws to submit their registration applications to the FSC. Those who failed to register would not be allowed to continue their operations. According to the updated list of “providers of virtual asset services” by the FSC on April 1, only 21 companies remain, down from the previous 23.
(Background: FSC: Taiwanese VASP operators must apply for registration by March 31; failure to complete could result in a maximum fine of 50 million for two years, is P2P trading entirely illegal?)
(Additional background: New FSC regulations: 70-80% of client assets of Taiwanese VASPs must be stored in cold wallets)
Phased Management of Virtual Asset Operators
The FSC has implemented a four-phase management system for virtual asset operators. The first phase involves compliance with the Anti-Money Laundering Act, requiring VASP operators to submit a compliance declaration to the FSC. The second phase establishes a VASP association to set guidelines and self-regulatory standards. The third phase involves drafting subordinate regulations under the Anti-Money Laundering Act, adding a “registration system.” The third phase of the “registration system” was enforced by the FSC at the end of November last year, mandating virtual asset operators to complete their registration by the end of September 2025, or they would be prohibited from continuing operations. The fourth phase involves drafting a special law, with the FSC planning to implement a “licensing system” to regulate VASP operators; those who operate without approval or a license will face criminal liabilities.
Article 30 of the VASP registration regulations stipulates that virtual asset service providers that had completed their compliance declaration under Article 17 of the Anti-Money Laundering and Counter-Terrorism Financing Regulations, released on June 30, 2021, must register with the FSC before March 31, 2025, and complete their registration by September 30, 2025; failure to do so will result in their inability to continue operations.
Reduction in the List of Providers of Virtual Asset Services
As the March 31 deadline for VASP operators to apply for anti-money laundering registration has passed, the list of “providers of virtual asset services” updated by the FSC’s Securities and Futures Bureau on April 1 shows that only 21 companies remain, down from the previous list of 23 operational companies. The two companies that have been removed are Aces Digital Innovation Co., Ltd. and Xiahe Co., Ltd.
Among them, the absence of Aces Digital Innovation Co., Ltd. from the list is particularly noteworthy as the company operates the well-known ACE exchange in Taiwan. Following the indictment and detainment of its founder and later responsible personnel in a fraud case, the company has been acquired by a new team and was renamed “Runtong Digital Innovation Co., Ltd.” in October 2024, now managed by the new operating team.
The company originally planned to rebrand the exchange, but last month it faced controversy as some users who purchased its debt products did not receive their interest payments on the distribution date, leading to widespread outrage online.
Related Reading
ACE Exchange Exposed for “Not Paying Debt Interest”! Users Furious: No Customer Service, CEO Has Left
Currently, external observers are closely monitoring whether ACE will experience a severe collapse. Credit investors are also very concerned about how to withdraw their principal and whether there are issues of misappropriation. Some investors have reported the situation to the FSC or are discussing their next steps with lawyers. Any further developments will be tracked by Dongqu.
