The global financial landscape is undergoing a seismic shift. Blockchain technology and digital assets are no longer niche experiments—they are redefining how value is stored, transferred, and utilized. At the forefront of this transformation in Taiwan stands Tsai Yu-Ling, Convener of the Supervisory Board of the Yushan Technology Association, a prominent voice urging Taiwan to embrace the Web3 revolution with a clear, forward-looking industrial policy.
In June 2023, the Yushan Technology Association held its 11th biannual general meeting, spotlighting AI and Web3 as core themes. Under Tsai’s leadership during the panel discussion, industry leaders including Google Taiwan’s Managing Director David Mah and Mysten Labs co-founder Eugene Zou engaged in a dynamic dialogue that underscored the urgency and opportunity of digital innovation.
With deep expertise spanning finance, law, and technology, Tsai has emerged as a critical observer of Taiwan’s positioning in the global crypto economy. In this exclusive interview, she shares her insights on the rise of virtual currencies, global regulatory trends, and what Taiwan must do to remain competitive.
The Rise of Virtual Assets: A Global Shift
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Virtual currency is more than a speculative asset—it's a foundational layer of the next internet era. Bitcoin, launched in 2009, sparked a financial revolution. By November 2021, the total market capitalization of cryptocurrencies peaked at $2.97 trillion. Although it dropped to $1.2 trillion by mid-2023 amid market corrections and high-profile collapses like FTX, Luna, and Celsius, the underlying adoption trend remains strong.
Over 420 million people worldwide now hold digital assets. India leads in absolute numbers with 103 million users, while Vietnam has the highest adoption rate at 20.54%. This growth signals not just investment interest but increasing integration into everyday economic activity.
Core Keywords: virtual currency, Web3, blockchain technology, digital assets, crypto regulation, Taiwan tech policy, CBDC, decentralized finance
Virtual Economies: Inevitable and Expanding
The momentum behind digital currencies extends beyond decentralized blockchains. Nation-states and large institutions are also entering the arena.
BRICS nations—Brazil, Russia, India, China, and South Africa—are exploring a unified digital currency. Representing over 40% of the global population and nearly one-third of world GDP, such a move could significantly alter global financial dynamics and challenge dollar dominance.
Meanwhile, religious and cultural communities are launching compliant digital tokens. For example, the Islamic Coin, aligned with Sharia principles, launched in September 2023 in partnership with DDCAP Group and Holiday Swap. As Tsai emphasizes, “This marks a pivotal moment where virtual assets begin to intersect meaningfully with real-world transactions.”
Major global brands—including Starbucks, McDonald’s, KFC, Coca-Cola, and GUCCI—now accept cryptocurrencies as payment. This commercial adoption reflects growing consumer familiarity and trust in digital money.
The Global Race to Become a Crypto Hub
Cities around the world are competing fiercely to become crypto hubs. London, Paris, New York, Singapore, Hong Kong, Dubai, and Sapporo are investing in infrastructure, regulatory clarity, and talent acquisition to attract blockchain innovators.
These jurisdictions understand that leadership in digital assets translates into long-term economic influence. Their proactive strategies contrast sharply with Taiwan’s cautious stance.
Central Bank Digital Currencies (CBDCs): The State Responds
In response to decentralized innovation, central banks are developing their own digital currencies. The International Monetary Fund (IMF) is working on a platform for cross-border CBDC interoperability, aiming to establish common regulatory standards.
China’s digital yuan is particularly significant. Integrated with Alipay and WeChat Pay and used to pay civil servants, it accelerates China’s de-dollarization strategy and strengthens its regional financial influence.
Tsai warns that Taiwan, as the second-largest market for RMB holdings outside China, cannot afford to ignore this development. “Cross-strait economic ties mean we’ll feel the impact quickly—both at the corporate and individual levels. We must monitor progress closely and prepare accordingly.”
Regulatory Approaches Around the World
Regulation plays a crucial role in shaping the crypto ecosystem. After the FTX collapse, regulators intensified scrutiny.
- United States: The SEC has taken an enforcement-heavy approach, suing major exchanges like Binance and Coinbase for alleged securities violations. Yet paradoxically, the U.S. also supports new entrants like EDX, revealing a dual strategy—containing threats to traditional finance while maintaining influence in the digital space.
- European Union: The Markets in Crypto-Assets (MiCA) regulation is a landmark framework offering legal clarity across member states. By creating a unified market for digital assets, the EU aims to become a global leader in compliant blockchain innovation.
- Japan: Once cautious after exchange hacks, Japan now champions Web3 through its 2023 “Web3 White Paper,” promoting tax reforms and regulatory sandboxes to foster adoption.
- Hong Kong & Singapore: Both cities are aggressively positioning themselves as crypto gateways in Asia. Hong Kong recently launched licensing rules for VASP operators (Virtual Asset Service Providers), opening doors for global platforms.
Tsai observes: “As Western regulators tighten screws, opportunities open in Asia. It’s a classic case of ‘when the West dims, the East brightens.’” This shifting balance presents strategic openings for forward-thinking economies.
Why Taiwan Needs an Industrial Policy—Not Just Regulation
Taiwan’s Financial Supervisory Commission (FSC) designated itself as the regulator for virtual asset platforms in 2023 and encouraged self-regulatory guidelines among industry players—a step forward in risk management.
But Tsai challenges this narrow focus: “Where is our industrial policy?” She argues that regulation alone is reactive. Without a proactive national vision for Web3 development, Taiwan risks falling behind.
👉 See how leading economies are building crypto-friendly ecosystems—what can Taiwan learn?
“Before we regulate,” she insists, “we must decide what kind of industry we want to build. Should policy come from the FSC or the Ministry of Digital Affairs? Do we amend existing laws or create new ones? These questions can’t be answered without first establishing strategic direction.”
She critiques Taiwan’s bureaucratic inertia: “Government can’t—and shouldn’t—control everything in Web3. Some things are beyond its reach.” Advocating for a “small government” model, she proposes enabling innovation by default: “If it’s not prohibited, businesses should be allowed to proceed.”
This permissive environment fosters experimentation and attracts global talent and capital—key ingredients for becoming a tech hub.
Call to Action: Multi-Country Strategy & Cross-Sector Collaboration
For Taiwanese startups in blockchain and digital assets, Tsai recommends a multi-country strategy: “Don’t limit yourself to Taiwan. Diversify operations globally to mitigate risk.”
She also highlights the role of institutions like the Yushan Technology Association in bridging industries. With strong roots in manufacturing and finance, the association can catalyze collaborations between traditional sectors and Web3 innovators.
“What’s next?” she asks. “How can manufacturers leverage tokenization? Can financial institutions offer decentralized services? The future lies in cross-industry synergy.”
FAQ: Addressing Key Questions
Q: Is cryptocurrency too risky for mainstream adoption?
A: While volatility and past failures like FTX highlight risks, growing institutional involvement and clearer regulations are making crypto safer and more accessible.
Q: Can Taiwan still catch up in the global crypto race?
A: Yes—but only with decisive action. Developing a national Web3 strategy now can position Taiwan as an innovation leader in Asia.
Q: What’s the difference between CBDCs and cryptocurrencies like Bitcoin?
A: CBDCs are state-issued digital currencies controlled by central banks; cryptocurrencies are decentralized and operate on public blockchains.
Q: Why is regulation important for crypto growth?
A: Clear rules protect investors and encourage institutional participation. However, overregulation can stifle innovation—balance is key.
Q: How does digital currency affect everyday consumers?
A: From faster cross-border payments to new investment options and loyalty programs using tokens, digital currencies are becoming part of daily life.
Q: What role should private organizations play in shaping policy?
A: Industry groups like Yushan can provide expert insights and foster public-private dialogue essential for effective policymaking.
Final Thoughts: Don’t Miss the Wave
Tsai’s message is urgent: “Taiwan cannot afford to be absent from the crypto wave.” With strategic vision, regulatory agility, and cross-sector collaboration, Taiwan can transform from a cautious observer into a key player in the digital economy.
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The time to act is now—not when the wave hits, but before it arrives.