On June 16, 2025, the Ministry of Digital Affairs (MODA) proposed the draft Act for the Promotion of Data Innovation and Utilization (the “Draft”). The purpose of the Draft is to expand data openness and sharing, promote data reuse, and provide a legal basis for the development of artificial intelligence (AI) in Taiwan.

The Draft consists of eight chapters and 32 articles, with its key provisions organized into three main sections: Foundations for data innovation and utilization (Chapter 2); promotion mechanisms (Chapters 3–6); and a friendly environment (Chapter 7).

In the section on the foundations for data innovation and utilization, the Draft establishes the institutional basis for promoting data innovation and utilization. Key points include requiring the competent authority to formulate a Basic Plan for the Development of Data Innovation and Utilization, subject to review every four years; granting the Executive Yuan the authority to convene a Data Innovation and Utilization Advisory Council to coordinate inter-agency matters; and requiring the appointment of a Chief Data Officer (CDO) in designated government agencies to promote and oversee data innovation and utilization within their agencies.

The promotion mechanisms section covers government data openness, inter-agency data sharing, industry data sharing, and data altruism mechanisms. Key points include stipulating that government data is, in principle, to be made open data; civil servants, when carrying out government data openness tasks, shall in principle bear no civil, criminal, or administrative liability for any unlawful acts committed in the course of such duties; allowing government agencies to establish regular mechanisms for inter-agency data sharing; enabling agencies to encourage industries to build cooperative data-sharing mechanisms; and encouraging the private sector to establish systems promoting data altruism.

The friendly environment section outlines a variety of measures to foster the development of data innovation and utilization. Key provisions include publicly disclosing high-value datasets on websites, along with their methods of use; ensuring that government data is in principle open and free of charge, while shared data may be subject to fees with possible exemptions or reductions; requiring the use of standard, non-exclusive licensing terms when opening government data, with allowance for AI research purposes; creating an innovation sandbox environment; providing grants, incentives, and capacity-building programs; and prioritizing cooperation with the private sector and promoting international exchanges.

MODA hopes that the enactment of this Act will establish a solid legal foundation in Taiwan for data innovation and utilization, and in so doing, build mechanisms for data openness, sharing, and reuse; meet the public and government demand for high-quality, trustworthy, easily-accessible data; enhance the value of digital development; and strengthen the protection of citizens’ rights.

On March 25, 2025, the Financial Supervisory Commission (FSC) made an open invitation for public consultation on the Draft Virtual Asset Services Act (referred to as the Draft below); consultation will remain open until May 24, 2025. The purposes of the Draft are to develop dedicated supervisory systems for virtual asset transactions and services that strengthen market discipline and protect users’ interests, while also promoting the application of fintech innovations and new technologies in Taiwan.

Background

Virtual assets, which are developed through the use of distributed ledger and cryptography technologies, have evolved to serve payment and investment functions. This makes them a new form of financial product. Their presence has also fueled the rise of virtual asset service providers, which in turn opens up new financial opportunities that are unavailable with conventional financial institutions. Virtual asset transactions give rise to supervisory concerns over cybersecurity risk, user protection, and prevention of illegal conduct; the Draft will thus be established as the dedicated law for regulating virtual asset transactions and services. By establishing well-defined frameworks establishment, operation, and supervision for business, the Draft aims to ensure proper management of stablecoin while at the same time prohibiting unfair transactions, thus promoting growth of the virtual financial market while protecting users’ interests.

Key Provisions of the Draft

The Draft aims to create a comprehensive system governing the establishment, operation, management, and supervision of virtual asset service providers. Key emphases include: (1) A clearly-established legal position and terminology for virtual assets: Defining the nature and scope of virtual assets; specifying what the law applies to and who its competent authority is; and establishing fundamental principles for innovative experiment and international collaboration; (2) A permitting and management system for service providers: The Draft will differentiate types of permitted business activities. It will also define criteria required to apply for a permit and capital requirements, restrictions for specialized and concurrent service providers, naming rules, and eligibility requirements for the person-in-charge and sales people; (3) Operational and internal control standards: The Draft will require that service providers to implement systematic practices for financial review, internal control, and auditing, as well as rules on outsourcing, data retention, and regulatory reporting; (4) Protection of users’ assets and information security: The Draft will require that service providers to keep their assets separate from users' assets, implement well-defined procedures on the placement of legal tender and the withdrawal and loaning of assets, and reinforce personal data protection and data confidentiality obligations; (5) Classification and management of different service providers: Businesses that provide different services such as exchange, trading platform services, asset custody, and underwriting are subject to different operating requirements concerning information disclosure, listing/delisting review, and outsourcing of custodian service etc.; (6) Establishment of peer association and self-regulatory rules: Service providers will be required to join a peers’ association; said association will be granted both training and penalization functions, and will supervise and offer guidance in the capacity of a governing authority; (7) Regulation of stablecoin issuance: The Draft will introduce procedures for the licensing and abolishment of stablecoin issuance, and introduce a well-defined management framework for issuers; (8) Prevention of illegal transactions and enhancement of supervisory authority: To prevent fraud, market manipulation, and unfair trading behaviors, the governing authority will be authorized to conduct inspections, issue penalties, and order suspension of business, which in turn ensures market discipline; (9) Clearly defined penalties and criminal liabilities for misconduct: The Draft will introduce criminal and administrative penalties against unlicensed business operations, asset embezzlement, misuse of name, and improper documentation, as well as rules on the intentional fault or negligence of a corporate entity and penal labor.

Subsequent effects

If the Draft is passed, it will become the first financial regulation in Taiwan specifically aimed at establishing a supervisory system for the virtual asset market. By introducing systematic practices on permit management, asset protection, data disclosure, and trade discipline, the Draft aims to achieve across-the-board improvement in user protections and compliance by service providers. The Draft will also provide a robust foundation for managing stablecoin issuance. This will help create a virtual finance ecosystem and aid in aligning it with the rest of the world, while promoting financial technology innovation and modernizing Taiwan’s supervisory systems.

On June 24, 2025, the Ministry of Digital Affairs (MODA) announced amendments to four regulations: The Matters Concerning Applications by Telecommunications Enterprises for the Assignment of Radio Frequency for Satellite Communications; the Key Points for Reviewing Applications for the Assignment of Radio Frequency for Satellite Communications by Telecommunications Enterprises; the Fee-charging Standards for the Application for Radio Frequency Allocation Review by Telecommunications Enterprises; and the Standards for the Usage Fees of Radio Frequency. The updates aim to expand telecom coverage, strengthen digital resilience, and align Taiwan’s satellite industry with international technical standards. They also clarify the application process and technical requirements for telecom operators applying for satellite spectrum; establish transparent review and approval procedures; and standardize administrative and usage fees for assigned frequencies. The key amendments to the four laws are as follows:

1. Matters Concerning Applications by Telecommunications Enterprises for the Assignment of Radio Frequency for Satellite Communications

The amendments expand the available frequency range from the original four Ku/Ka bands to include L, S, C, Ku, Ka, Q/V, and E bands. Following the International Telecommunication Union (ITU) classification, the regulation now distinguishes between fixed satellite service (FSS) and mobile satellite service (MSS). For the first time, MSS frequencies are opened to public telecom services, providing a legal basis for applications such as satellite phones, direct-to-mobile satellite connections, and maritime and aeronautical communications.

The license term for newly-assigned or added MSS frequencies is extended from two years to five years, with the same term for renewals. For applications that involve only changes to frequency or installation site, without adding new uses, the original term will continue to apply. With the exception of reassignments, applications can now be submitted at any time, and review fees are payable after submission and once payment notice is received. Operators must meet stricter obligations, including technical monitoring and immediate shut-off capabilities for user devices; unified rules for interference resolution and frequency sharing; and readiness to avoid or tolerate interference if the spectrum is later reallocated for mobile use.

2. Key Points for Reviewing Applications for the Assignment of Radio Frequency for Satellite Communications by Telecommunications Enterprises

The title is updated from “Fixed Satellite Communications” to “Satellite Communications” to cover both FSS and MSS, with corresponding changes to related forms and review sheets. The review process is also simplified for existing systems to add or change frequencies or installation sites, without introducing new frequency bands; no scoring process is required, and approval can be granted with the agreement of two-thirds of attending committee members.

3. Fee-charging Standards for the Application for Radio Frequency Allocation Review by Telecommunications Enterprises

The amendments refine the previous “new” and “change” categories into four scenarios: NT$5,000 for reassignments; NT$200,000 for site or frequency changes without no added bands; NT$500,000 for changed frequency bands; and NT$1,000,000 for new assignments and new frequency uses. MSS is now included in the fee structure, with clear rules for when application is made for both FSS and MSS in a single system. For the first time, “installation site change” is listed as a chargeable item. The rules’ date of effect is also changed from the original specific date to taking effect immediately when announced.

4. Standards for the Usage Fees of Radio Frequency

Amendments include expanding the “Vertical Application Service Discount” into a broader “Digital and Diverse Application Service” discount; adding new discount types, introducing a “Harmonized Usage Discount for FSS Frequencies”; adding a “5G User Ratio Discount”; and adjusting the calculation method for the coverage factor. In compliance with similarly-themed regulations, the terminology is also updated from “Fixed Satellite Communications” to “Satellite Communications.”

Opening MSS frequencies for public telecommunications services holds significant importance for the development of Taiwan’s satellite communications industry. In accordance with the International Telecommunication Union (ITU) classification, fixed satellite service (FSS) is primarily used for broadband internet, submarine cable backup, maritime communications, and satellite news gathering; while mobile satellite service (MSS) is used for mobile platforms such as satellite phones, search-and-rescue devices, vessels, aircraft, and land vehicles. Since 2022, MODA has opened four FSS frequency bands and, in February 2025, amended the Radio Frequency Supply Plan to add seven MSS bands, expand FSS to twelve bands, and extend the spectrum usage term from two to five years. This opening is seen as an important step in advancing direct-to-mobile satellite services, emergency communications, and maritime and aeronautical communications, as well as addressing coverage gaps in remote areas, outlying islands, and mountainous regions, and providing timely communication support during disasters.