Taiwan's Crypto Adoption Rate Stalls at 5% — Can NT Dollar Trading Depth Unlock Mass Investment?

·

Taiwan’s cryptocurrency adoption rate remains around 5%, mirroring the global average. Despite growing interest from traditional investors — especially those familiar with the Taiwan Stock Exchange — mass participation has yet to materialize. Industry experts point to one critical bottleneck: lack of New Taiwan Dollar (TWD) trading depth.

As Bitcoin gains legitimacy through U.S. regulatory approvals and institutional endorsements, Taiwan is positioning itself within this evolving digital asset landscape. With the formation of the Virtual Assets Service Provider (VASP) Association in 2024, the local crypto industry has entered a new era of self-regulation and formal oversight.

But for true financial inclusion and market maturity, experts argue that seamless TWD integration is essential — not just for convenience, but for keeping capital local and protecting consumer rights.

👉 Discover how a stock-like crypto trading experience could revolutionize digital investing in Taiwan.

Why TWD Trading Depth Is the Missing Puzzle Piece

Winston Hsiao, Co-Founder and Group Chief Revenue Officer at XREX, emphasizes that without sufficient liquidity in TWD-denominated trading pairs, widespread adoption will remain out of reach.

"Most retail investors think in New Taiwan Dollars," Hsiao explains. "When they buy shares in TSMC or other listed companies, everything — cost basis, profits, dividends — is calculated in TWD. The same should apply to crypto."

Currently, many Taiwanese investors use domestic platforms to convert TWD into stablecoins like USDT, then transfer funds overseas for trading. This process fragments liquidity and exposes users to significant risks.

Problem 1: Shallow Local Order Books Push Capital Overseas

The lack of deep TWD order books means price slippage and volatility are often worse on local exchanges than on global ones. As a result, even though trading volume from Taiwan is high, most capital flows offshore.

Hsiao cites the 2022 FTX collapse as a stark example: Taiwanese users ranked among the top seven globally in terms of losses. This wasn’t due to excessive speculation alone — it reflected a systemic issue where local investors had no choice but to rely on foreign exchanges.

"When you're forced to trade in USD or stablecoins abroad, your money leaves the domestic ecosystem," Hsiao says. "That weakens our financial sovereignty and increases exposure to unregulated environments."

Problem 2: Consumer Protection Gaps in a Borderless Market

While crypto transactions transcend borders, regulatory authority does not. If an overseas exchange fails, Taiwanese investors have little recourse.

Even with increasing global regulation — such as the U.S. Securities and Exchange Commission’s (SEC) January 2025 approval of spot Bitcoin ETFs — jurisdictional limitations mean domestic authorities can’t protect citizens using foreign platforms.

👉 See how regulated, localized trading solutions are reshaping investor confidence in Asia.

Hsiao stresses that consumer protection starts with accessible, compliant local options:

“True financial innovation isn’t just about technology — it’s about trust. And trust comes from transparency, regulation, and user-friendly design.”

Bridging the Gap: The Rise of “Stock-Like” Crypto Trading

To bridge the gap between traditional finance and digital assets, XREX launched its "Stock-Like Trading Experience" in July 2025. The platform now supports over 30 TWD trading pairs, including BTC/TWD and ETH/TWD, allowing users to buy and sell cryptocurrencies using familiar NT dollar terms.

This model mirrors how investors trade stocks on the Taiwan Stock Exchange:

For retail investors — particularly those already active in equities — this eliminates a major psychological and technical barrier.

How It Works:

  1. Deposit TWD directly into your account
  2. Buy Bitcoin or other assets priced in TWD
  3. Track gains and losses in your local currency
  4. Withdraw profits directly as TWD

No more juggling stablecoins. No more navigating complex wallets. Just a smooth, intuitive experience tailored for mainstream adoption.

“Crypto is part of finance,” Hsiao asserts. “And financial principles are universal. Why should investing in Bitcoin feel so different from buying stocks?”

By aligning crypto trading with existing investor behaviors, XREX aims to onboard the next wave of digital asset adopters — those who aren’t crypto natives but are financially literate and eager to diversify.

Frequently Asked Questions (FAQ)

Q: Why is Taiwan’s crypto adoption rate still only around 5%?
A: Despite strong investor interest, limited TWD trading depth forces users offshore. Without liquid local markets and familiar interfaces, mainstream adoption stalls.

Q: What does “TWD trading depth” actually mean?
A: It refers to the volume and liquidity available when buying or selling crypto using New Taiwan Dollars. Deeper order books mean better prices, less slippage, and more confidence for traders.

Q: Is it safe to trade crypto on local platforms?
A: Platforms licensed under Taiwan’s VASP framework and compliant with anti-money laundering (AML) standards offer greater security and legal recourse than unregulated offshore exchanges.

Q: How does a “stock-like” trading experience help beginners?
A: It removes the need to understand stablecoins or wallet management. Users interact with crypto the same way they do with stocks — using TWD for pricing, buying, and profit calculation.

Q: Can local exchanges compete with global giants like Binance or Coinbase?
A: Not necessarily in scale — but they can win in trust, compliance, and user experience for regional investors. Features like instant TWD settlement give them a strategic edge.

Q: Will deeper TWD markets keep capital in Taiwan?
A: Yes. When investors can trade efficiently and securely at home, there’s less incentive to move funds abroad — strengthening the domestic fintech ecosystem.

The Road Ahead: Building Trust Through Familiarity

XREX’s pivot toward retail-focused services marks a broader shift in the industry. Once primarily serving emerging-market enterprises with USD and stablecoin solutions, the company now sees immense potential in empowering everyday Taiwanese investors.

Since launching TWD deposits and withdrawals in September 2024, XREX has steadily expanded its fiat infrastructure — a move aligned with global trends toward regulated, localized access points for digital assets.

With its subsidiary receiving a Major Payment Institution (MPI) license from Singapore’s Monetary Authority (MAS) in May 2025, XREX is also building credibility across Asia’s tightly regulated financial corridors.

But technology and compliance alone aren’t enough.

👉 Explore how seamless fiat-to-crypto gateways are driving the next phase of financial inclusion.

As Hsiao puts it:

“The future of crypto isn’t just about decentralization or blockchain breakthroughs — it’s about accessibility. If we want台股 investors to join, we need to speak their language. And that language is TWD.”

For Taiwan to fully embrace the digital asset revolution, the path forward is clear: deepen local liquidity, prioritize user protection, and deliver experiences that feel familiar — not foreign.

The tools are here. The demand is real. Now it’s time to build a crypto economy that works for everyone.

Core Keywords: