Taiwan Crypto Restrictions: What’s Banned, What’s Allowed in 2025

When it comes to Taiwan crypto restrictions, the regulatory framework that governs how cryptocurrencies are traded, taxed, and monitored in Taiwan. Also known as Taiwan cryptocurrency regulations, it’s not a ban—it’s a tight leash. Unlike China, Taiwan lets people own and trade crypto, but only through licensed platforms that follow strict anti-money laundering rules. This means if you’re using an exchange in Taiwan, it has to be registered with the Financial Supervisory Commission (FSC). Unlicensed platforms? They’re shut down fast.

The FSC doesn’t stop at exchanges. It also tracks crypto trading Taiwan, how individuals buy, sell, and hold digital assets. Also known as digital currency Taiwan, this activity is now fully reportable. Every trade, even between wallets, can be flagged if it crosses certain thresholds. The government doesn’t tax crypto as income like some countries, but capital gains from selling crypto are treated as miscellaneous income—meaning you owe taxes when you cash out. And if you’re running a business that accepts crypto? You need to report it like any other payment. No gray areas.

What about mining? It’s legal—but not encouraged. Power consumption from crypto mining has become a concern, especially with Taiwan’s limited energy supply. Local utilities have started cutting power to large-scale miners. And while peer-to-peer trading still happens, platforms like LocalBitcoins or Paxful aren’t officially supported. Most users rely on licensed exchanges like Taiwan crypto exchange platforms that comply with FSC rules, such as Bobax or Bitrue’s Taiwan operations.

The crackdown isn’t just about money—it’s about control. In 2024, Taiwan froze accounts linked to unregistered DeFi protocols and shut down a dozen crypto lending apps that promised high yields. These weren’t scams—they were just unlicensed. The message is clear: if you’re not regulated, you’re not allowed. Even airdrops and token sales need approval if they target Taiwanese users.

So what does this mean for you? If you’re in Taiwan, you can still hold Bitcoin, Ethereum, or Solana—but you can’t use unregulated tools. No anonymous wallets for big trades. No offshore exchanges without KYC. And if you’re thinking of launching a token? Forget it unless you’ve cleared legal hurdles with the FSC. The rules are strict, but they’re also predictable. That’s why most locals stick to the big, licensed exchanges—even if fees are higher.

Below, you’ll find real-world breakdowns of what’s happened to exchanges caught breaking these rules, how users are adapting, and which platforms still work without risking your funds. No fluff. Just facts from people who’ve been through it.