Taiwan Mobile Receives VASP License, Enters Crypto Market

Taiwan’s second-largest telecom leverages its resources and experience to dive into cryptocurrency.

Taiwan Mobile, the nation’s second-largest telecommunications provider, has secured a virtual asset service provider (VASP) license from Taiwan's Financial Supervisory Commission (FSC), as reported by local sources. This licensing allows the telecom giant to establish its own cryptocurrency exchange.

Referred to as Taiwan Big Brother in Chinese, Taiwan Mobile is the 26th entity to obtain a VASP license. The company has been planning its entry into the cryptocurrency sector for over a year. Bloomberg previously speculated that Taiwan Mobile might acquire an existing exchange to fast-track its market presence. The VASP license was awarded to Fusheng Digital, a subsidiary fully owned by Taiwan Mobile. Both entities are under the leadership of CEO Lin Zhichen.

VASPs: Enhancing a Diverse and Regulated Industry

To attain the VASP license, Taiwan Mobile had to comply with rigorous Anti-Money Laundering (AML) standards. Meeting these criteria qualifies the company for membership in the self-regulatory Taiwan Virtual Asset Service Provider Association, established in June.

Most current members of the VASP association are startups, so the inclusion of a major corporation like Taiwan Mobile is expected to significantly bolster the industry. Chairman Zheng Guangtai noted that the addition of companies from various sectors would infuse the association with valuable new experience and resources.

Crypto Regulation Tightens in Taiwan

The FSC took charge of crypto regulation in mid-2023. By September, it had developed comprehensive guidelines for managing crypto businesses and banned foreign operators from the market. In October, a bill supporting the FSC’s guidelines with fines was introduced in the Taiwanese parliament.

In March, the FSC announced plans to introduce a bill aimed at tightening regulations and enhancing consumer protections. Additionally, in May, the Justice Ministry proposed amendments to AML laws that would impose prison terms on those responsible for violations by VASPs.

In the same month, Binance collaborated with the Justice Ministry to resolve a money laundering case worth $6.2 million, resulting in nine individuals being charged with money laundering, fraud, and organized crime.

This move by Taiwan Mobile into the cryptocurrency sector marks a significant step for both the company and the broader crypto industry in Taiwan, highlighting the evolving regulatory landscape and increasing institutional interest in digital assets.

(Photo Source / Blockonome)