Taiwan is preparing to switch on a crypto rule it has kept on the shelf for years. The Financial Supervisory Commission has released a draft amendment to its anti-money-laundering regulations for virtual asset service providers that would finally bring the travel rule into force, starting with domestic transfers in October 2026. The change is out for public consultation until 14 September 2026, so it is a proposal rather than a rule in force, but it sets a clear timetable for an obligation written into Taiwanese law since 2021 that has never taken effect.
A rule that has waited since 2021
The travel rule sits in Article 7 of the FSC’s AML and counter-terrorism-financing regulations for VASPs. The article was drafted back in 2021, but when the wider regulation took effect, its start date was deliberately left open to be fixed later by the regulator. The reason was the familiar sunrise problem: travel-rule obligations only work if the firms on both ends of a transfer use compatible systems to pass information, and cross-border rules and messaging standards were not aligned enough to make that practical. The FSC’s answer now is to phase the rule in, domestic first, rather than wait for the whole world to converge.
What VASPs would have to collect and pass on
Under the proposal, a virtual asset firm sending a transfer would have to obtain and securely transmit a defined set of information to the receiving firm, and keep records:
- For the sender: their name and their wallet information.
- For the receiver: their name and the receiving wallet information.
The firm receiving a transfer would carry its own duties. It would have to spot transfers that arrive without the required information, apply risk-based policies to decide whether to accept or reject them, and, above a set threshold, check the beneficiary details it receives against the records it already holds on that customer.
A NT$30,000 threshold for enhanced data
The name and wallet data above are required for every transfer, regardless of size. The proposal then adds a threshold at NT$30,000, roughly US$930, above which the sender must provide more:
- For individuals, both a date of birth and a residential address.
- For companies and other legal entities, an official identification number and a registered address.
The receiving firm’s obligation to reconcile incoming beneficiary information against its own customer records is also tied to transfers above the NT$30,000 line, focusing heavier checks on larger movements of value.
Two phases, domestic first
The rollout is staged. In the first phase, starting in October 2026, the travel rule would apply to transfers between VASPs both registered in Taiwan. Cross-border transfers, those going to or coming from VASPs overseas, are held back to a second phase targeted for the end of 2027, giving firms and their counterparties time to build the connections and align on messaging before the harder cross-jurisdiction leg switches on. The October date is a target that depends on the draft clearing its consultation.
Where it sits, and what comes next
It is worth being clear about how this fits Taiwan’s broader crypto rules. The travel rule is part of the AML regime made under the Money Laundering Control Act, and it is separate from Taiwan’s new Virtual Asset Service Act, the standalone law passed in 2026 that moves the sector from AML registration towards full licensing, with its own sub-regulations expected later. In other words, this activates existing anti-money-laundering machinery now, running ahead of and alongside the incoming licensing framework.
For VASPs operating in Taiwan, the practical work is to be ready to collect, transmit, verify and retain the required data for domestic transfers by October 2026, and to start planning for the cross-border phase. The draft is open for comment until 14 September 2026, and the detail sits in the FSC’s regulation for virtual asset service providers.
