Taiwan’s Financial Supervisory Commission (FSC) said on Aug. 4 that it will roll out the crypto Travel Rule in phases. Under the plan, when users transfer Bitcoin or other virtual assets through domestic virtual asset service providers (VASPs), individuals will need to provide their date of birth and residential address if a single transfer exceeds NT$30,000. The receiving side will also have to verify the information to improve transparency and traceability.
The first phase is set to begin in October 2026 and will apply to transfers between domestic VASPs. The second phase will cover cross-border transfers between domestic and overseas VASPs and is expected to take effect by the end of 2027.
Rulemaking tied to FATF standards
The FSC said virtual assets carry anonymity and cross-border transfer features. Without an information disclosure mechanism, they can be used in money laundering or terrorist financing flows. The Financial Action Task Force, or FATF, has required jurisdictions to establish a Travel Rule framework under which VASPs pass along information on both sides of a transfer.
Taiwan had already incorporated Travel Rule-related provisions in 2021 through its anti-money laundering and counter-terrorist financing rules for businesses or individuals providing virtual asset services. Those rules were not formally implemented, however, because of differences in regulations across countries, inconsistent data transmission standards, and difficulties linking cross-border systems.
According to the FSC, it has continued discussions on practical implementation with the Virtual Asset Service Provider Association of the Republic of China after publishing the list of VASPs that completed AML registration last year. After multiple rounds of talks, it decided to adopt a phased approach.
Extra disclosures required above NT$30,000
To align with international standards, the FSC said it referred to the revised Recommendation 16 of the FATF and its interpretive note while preparing draft amendments. The agency said it will soon publish the draft rules for public notice.
The biggest change in this round of amendments is what the FSC described as an enhanced information collection mechanism with an upper-threshold requirement. Under the proposal, VASPs must implement the Travel Rule and collect and transmit basic identity information on both sides of a transaction regardless of transfer size.
If a single transfer exceeds NT$30,000, additional information will be required:
- For individuals: date of birth and residential address.
- For legal entities: official identification number and registered address.
The FSC said the arrangement would improve transaction traceability and match international AML supervision requirements.
Receiving VASPs will need to check recipient data
The proposed amendments also add verification duties for receiving platforms. When a VASP acts as the receiving side of a virtual asset transfer and the amount is above NT$30,000, it must compare the recipient information provided by the transferring side with the customer data it already holds. The requirement is intended to strengthen data accuracy and risk control.
Two-stage rollout schedule
The FSC said it chose a phased rollout because domestic and overseas VASPs still need time for system integration and operational adjustments.
Phase one will start in October 2026 and apply to transfers between domestic VASPs. Phase two is expected to launch by the end of 2027 and will apply to cross-border transfers between domestic VASPs and overseas VASPs.
The regulator said the draft amendments will soon be published in the Executive Yuan Gazette and on the FSC website. The public will have 30 days from the announcement date to submit comments for reference before the rules are finalized.
Industry association backs phased implementation
The Virtual Asset Service Provider Association of the Republic of China said it will continue to act as a bridge between regulators and the industry and expressed strong support for the FSC’s phased Travel Rule plan.
The association said it is already helping members with technical integration and process optimization for the first-stage domestic VASP transfer framework. It said the work is meant to ensure platforms can go live on schedule and prepare for the second stage covering transfers between domestic and overseas VASPs.
The association added that as major financial markets including Singapore, Japan, and the European Union move ahead with Travel Rule implementation, Taiwan’s phased adoption would help local VASPs connect with the global compliance ecosystem and improve their international credibility and competitiveness.