Taiwan Crypto Rules: What You Can and Can't Do in 2025
When it comes to Taiwan crypto rules, the regulatory framework that governs how individuals and businesses interact with digital assets in Taiwan. Also known as Taiwan cryptocurrency regulations, it's not about banning crypto—it's about controlling how it flows through the financial system. Unlike countries that outright ban digital assets, Taiwan lets you buy, sell, and trade crypto—but only if you play by their rules.
At the heart of it all is the Financial Supervisory Commission (FSC), Taiwan’s main financial regulator that enforces crypto compliance. It doesn’t ban exchanges, but it demands they register, verify users with KYC, Know Your Customer checks that require government-issued ID and proof of address. Also known as identity verification, this isn’t optional—it’s mandatory for any platform operating legally in Taiwan. If you try to skip KYC, you’re not just breaking platform rules—you’re risking a criminal charge. Fake IDs, forged documents, or shell accounts? That’s a federal offense, and Taiwan’s prosecutors don’t mess around.
Then there’s the crypto tax Taiwan, the system that treats cryptocurrency gains as taxable income, not capital gains. Also known as digital asset taxation, Taiwan taxes every trade, every swap, every time you turn BTC into ETH or cash out to NT$. No exemptions. No loopholes. Even if you’re just swapping tokens, the FSC expects you to track it. And yes, they can see your wallet history through licensed exchanges. Unlike Thailand or Dubai, there’s no tax holiday here. You pay when you profit. Period.
What about unregulated exchanges? You’ll find some—but they’re risky. If an exchange doesn’t display its FSC registration number, avoid it. No legal protection. No recourse if funds vanish. And if you’re using a VPN to bypass restrictions? That’s a red flag. Taiwanese authorities are getting better at spotting suspicious behavior, even if you think you’re hidden.
So what does this mean for you? If you’re trading in Taiwan, you need three things: a registered exchange, verified ID, and a spreadsheet. No fancy tools. No guesswork. Just records. The posts below show real cases—people who got caught using fake documents, others who missed taxes and got fined, and a few who followed the rules and stayed clean. You won’t find hype here. Just facts, consequences, and what actually works under Taiwan crypto rules.
Cryptocurrency Taxation in Taiwan: What Traders Need to Know in 2025
Cryptocurrency taxation in Taiwan applies 5% VAT on sales and 20% income tax on profits. Traders must track purchases, report gains, and prepare for mandatory reporting as regulators tighten rules in 2025-2026.
- December 5 2025
- Terri DeLange
- 18 Comments