7 Taiwan Crypto Exchanges: Compliance, Security, and Safety Guide

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In recent years, cryptocurrency adoption in Taiwan has grown steadily. However, the regulatory environment remains in transition—leaving users to navigate a landscape where no exchange holds an official license, and safety depends largely on transparency, third-party oversight, and operational integrity.

With global incidents like the FTX collapse still fresh in memory, investors are more cautious than ever. How can you ensure your digital assets are safe when using a Taiwan-based crypto exchange?

This guide breaks down the current compliance status of major local platforms, evaluates their security measures, and offers actionable insights to help you make informed decisions—so you can invest with confidence.

Is Cryptocurrency Legal in Taiwan?

Cryptocurrency operates in a legal gray area in Taiwan. While there is no outright ban on digital assets or blockchain technology, comprehensive legislation specifically governing crypto exchanges has yet to be enacted.

The Financial Supervisory Commission (FSC) has not established a formal licensing system for Virtual Asset Service Providers (VASPs), meaning no exchange in Taiwan currently holds a government-issued crypto license. Any platform claiming otherwise may be misleading users or engaging in deceptive practices.

That said, authorities have signaled support for innovation in fintech and blockchain. The focus so far has been on anti-money laundering (AML) compliance rather than full-scale regulation.

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Why No Licensing System Yet? Understanding Taiwan’s Regulatory Stance

Taiwan’s approach to crypto regulation emphasizes self-regulation and industry-led initiatives. In June 2024, the Virtual Assets Association of Taiwan (VAAT) was officially formed with 24 founding members, including major players like BitoPro, XREX, and MAX.

Led by industry leaders such as:

The association aims to establish self-regulatory norms, promote transparency, and work closely with regulators to shape future policy.

While the FSC does not issue licenses, it requires crypto businesses to comply with AML laws and register under the Money Laundering Control Act. Exchanges that complete this process are listed on the FSC website—but this does not equate to official approval or user protection guarantees.

What Happens If There’s No License? Risks to User Assets

Without formal regulation, users face several potential risks:

Compare this to jurisdictions like Japan, where strict rules require exchanges to separate customer funds from operational capital. During the FTX crisis, Japanese users were the only ones able to withdraw their assets smoothly due to these safeguards.

In Taiwan, non-compliance with AML rules can result in fines between NT$500,000 and NT$10 million—but there's no compensation mechanism for affected users.

How Does the FSC Regulate Crypto Exchanges Today?

Currently, the FSC’s authority over crypto platforms is limited to AML enforcement. Key points include:

Two draft regulations are under review:

  1. VASP Registration Rules for Anti-Money Laundering
  2. Amended Virtual Currency Platform AML and Counter-Terrorist Financing Rules

If passed, these could pave the way for a formal registration framework—giving the FSC stronger oversight powers.

Until then, compliance remains voluntary beyond basic AML obligations.

Top 7 Taiwan Crypto Exchanges: Security & Compliance Comparison

Here's an overview of leading exchanges based on key trust indicators:

MAX / MaiCoin Exchange

BitoPro Exchange

XREX Exchange

ACE Exchange

⚠️ Caution Advised
Linked to传销 (pyramid scheme) allegations in early 2024. Despite being AML-compliant and having bank custody through Cathay United Bank, its reputation has significantly declined.

👉 See how top-tier exchanges protect user funds—explore advanced security models.

Rybit Exchange

BITGIN Exchange

HOYA BIT Exchange

What Does “FSC Regulated” Really Mean?

When an exchange claims to be “regulated by the FSC,” what they typically mean is that they’ve fulfilled AML/KYC requirements—not that they’re licensed or audited.

The FSC does not verify reserves, monitor financial health, or guarantee user fund safety. So while AML compliance shows a level of professionalism, it should not be mistaken for full regulatory approval.

Does AML Compliance Protect Users? Not Directly

Completing AML declarations means an exchange:

These are essential steps—but they don’t ensure solvency or prevent fraud. However, consistent compliance year after year signals a platform’s long-term commitment to operating transparently.

For any exchange aiming to become fully compliant in the future, AML adherence is the minimum baseline.

Which Taiwan Exchanges Published Proof of Reserves?

Proof of Reserves (PoR) allows users to verify that an exchange holds enough assets to cover customer balances.

As of 2024, only a few platforms have taken meaningful steps:

ExchangePoR Status
XREX✅ On-chain Merkle Tree; updated regularly (last: Mar 2024)
MAX / MaiCoin✅ One-time audit report (Nov 2022)
BitoPro✅ One-time statement (Nov 2022)
ACE✅ One-time release (Dec 2022)

Among them, XREX stands out for offering real-time, chain-verifiable proof—a gold standard in transparency.

Which Exchanges Use Third-Party Bank Custody?

Keeping user TWD deposits in third-party banks reduces the risk of misappropriation. As of 2024, these exchanges use bank custody:

According to MAX, funds are held in trust accounts separate from company operating accounts—ensuring that even if the platform shuts down, user deposits can be returned directly by the bank.

Are There “Top 3” or “Big 4” Exchanges in Taiwan?

Historically, the term "Taiwan's Big Three" referred to:

  1. BitoPro
  2. ACE
  3. MAX

These dominated market share due to early entry and strong branding. However, ACE’s involvement in fraud cases has eroded trust, making such rankings outdated.

Today, credibility should be assessed based on:

Have Any Taiwan Exchanges Failed Before?

Yes. Several platforms have shut down due to poor management or insolvency:

1. BitStarEx (比特之星)

Collapsed in 2020 after failing to meet withdrawal demands. Reports indicated internal fund挪用 (misappropriation).

2. Cobinhood

Once a high-profile zero-fee exchange (founded 2017), it failed following unsuccessful ICO fundraising and financial strain. Ceased operations in 2020.

3. BBD (幣必多)

Focused on mining services but collapsed in 2020 due to declining revenue and insufficient liquidity.

These cases underscore the importance of choosing platforms with clear financial practices and third-party safeguards.

Frequently Asked Questions (FAQ)

Q1: Can I trust any crypto exchange in Taiwan?

Yes—but with caution. Prioritize exchanges that publish Proof of Reserves, use bank custody, and have clean operational histories like MAX and XREX.

Q2: Is my money safe if an exchange uses bank custody?

Bank custody significantly reduces risk by separating user funds from company assets. However, it doesn’t protect against hacking or technical failures—so always check additional security layers.

Q3: What is Proof of Reserves (PoR), and why does it matter?

PoR proves an exchange holds enough crypto to back user balances. Without it, platforms could be insolvent without anyone knowing—just like FTX.

Q4: Should I avoid all exchanges without licenses?

Not necessarily. While no Taiwan exchange has a license yet, some follow international best practices voluntarily. Focus on transparency, audits, and security features instead.

Q5: Will Taiwan introduce crypto licensing soon?

Likely. The formation of VAAT and ongoing draft regulations suggest a formal registration system could launch within the next few years.

Q6: How can I verify an exchange’s legitimacy?

Check:

Final Thoughts: How to Stay Safe When Choosing a Crypto Exchange

In the absence of formal regulation, your best defense is due diligence.

Look for exchanges that go beyond basic AML compliance by:

Currently, MAX and XREX lead in transparency and security practices. Both are active in shaping Taiwan’s regulatory future and offer verifiable trust mechanisms that set them apart.

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Always remember: In crypto, your keys, your coins. The safest place for large holdings is still a private wallet—not an exchange account.

Stay informed. Stay secure.

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