Taiwanese lawmakers plan to introduce the first draft of a special law targeting cryptocurrencies by the end of November 2023. Legislative Yuan official Jiang Yongchang said the bill is necessary to regulate crypto-related businesses. Taiwanese lawmakers are increasingly concerned about activity in offshore markets and are trying to avoid "regulatory arbitrage." Jiang Yongchang believes that encrypted assets are different from traditional financial products and need to be managed through a special law.

On October 6, Jiang Yongchang held a public hearing in Taiwan’s parliament to discuss the draft proposal with digital asset service providers, academics, and industry insiders. Previously, Taiwan’s Financial Supervisory Commission (FSC) issued guidelines on September 26 aimed at improving the protection of cryptocurrency investors. The guidance includes segregating assets in exchange vaults from customers’ assets and reviewing mechanisms for listing and delisting digital assets. At the same time, it is stipulated that foreign virtual asset service providers are not allowed to provide services in Taiwan without approval from local regulatory agencies.