[Important News from Last Night and This Morning (July 1 - July 2)] Taiwan Passes First Crypto-Specific Law, the 'Virtual Asset Service Act,' Establishing a Clear Regulatory Framework The Legislative Yuan of Taiwan has passed the third reading of the 'Virtual Asset Service Act,' creating a comprehensive regulatory framework for Virtual Asset Service Providers (VASPs) and stablecoin issuers. The act stipulates that crypto platforms must obtain approval from the Financial Supervisory Commission (FSC) before operating and meet stricter requirements for cybersecurity, customer asset segregation, and internal controls. Platforms that have already completed anti-money laundering registration must apply for a license within 12 months of the new law's enactment and secure FSC approval within 21 months. Stablecoin issuance and management require approval from both the Central Bank and the FSC, along with maintaining full reserves. Unauthorized operation of VASP or stablecoin businesses can result in a maximum prison sentence of 7 years and a fine of up to NT$100 million. Fraud or market manipulation offenses can lead to prison sentences of 3 to 10 years and fines ranging from NT$10 million to NT$200 million. Jeremy Allaire responds to OUSD competition: