Taiwan Crypto Law 2025: What’s Changed and What It Means for Traders

When it comes to Taiwan crypto law 2025, the legal framework governing cryptocurrency trading, taxation, and exchange operations in Taiwan as of 2025. Also known as Taiwan digital currency regulations, it’s no longer a gray area—Taiwan has moved from观望 (watching) to enforcing clear rules that impact everyone from casual traders to local exchanges. Unlike countries that banned crypto outright, Taiwan took a middle path: allow innovation but tie it to strict oversight.

This shift didn’t happen overnight. The Financial Supervisory Commission (FSC) started pushing for transparency in 2023, and by 2025, all crypto exchanges operating in Taiwan must be licensed. That means platforms like Binance or Bybit can’t just show up and start taking deposits—they need local registration, KYC/AML systems, and regular audits. If they don’t? They’re blocked. And users? They’re protected—sort of. The law doesn’t ban personal ownership, but it does require exchanges to report large transactions to tax authorities. That’s where crypto tax Taiwan, the requirement for individuals to report capital gains from crypto trades on their annual income tax returns. Also known as Taiwan crypto income reporting, it’s now a legal obligation, not a suggestion. Profits from trading, staking, or mining are treated as miscellaneous income. No special crypto tax rate—just regular income tax, which can go up to 40% depending on your bracket.

What about decentralized finance? DeFi platforms that don’t have a physical presence in Taiwan aren’t directly regulated—but if you’re a resident using them, you’re still responsible for reporting gains. The FSC doesn’t police your MetaMask wallet, but if you cash out to a Taiwanese bank, the transaction leaves a paper trail. And if you’re running a business that accepts crypto? You need a business license, and you must keep records for seven years. crypto regulation Taiwan, the set of rules enforced by Taiwan’s Financial Supervisory Commission to ensure transparency, prevent money laundering, and protect consumers in digital asset markets. Also known as Taiwan cryptocurrency rules, it’s designed to make the market safer, not to stop it. This is why you’ll see more local exchanges like Kuna or MEXC Taiwan offering fiat on-ramps with full compliance—they’re the only ones still standing.

There’s no ban on mining, but power usage is monitored. If you’re running a large-scale operation, you’ll need approval from Taiwan’s power company. Small-scale miners? Still fine, but don’t expect your electricity bill to stay low. And while Taiwan hasn’t launched a central bank digital currency (CBDC) yet, the Central Bank is testing blockchain tech for interbank settlements—so expect more official digital currency talk in 2026.

What you’ll find below isn’t theory. It’s real cases: how traders got caught skipping taxes, how one exchange lost its license for fake volume, and why a popular DeFi project got blocked from advertising in Taiwan. These aren’t hypotheticals—they’re lessons from people who lived through the change. Whether you’re holding Bitcoin in Taipei or trading tokens from Taichung, understanding these rules isn’t optional anymore. It’s the difference between staying compliant and getting hit with fines—or worse.