TAIPEI -- Taiwanese officials are considering banning Uber after it failed to meet regulatory requirements, in another setback for the U.S. ride-sharing service in Asia following its exit from China earlier this week.

Emile Chang, executive secretary at the Investment Commission, said on Wednesday that Uber had breached local regulations because it had not applied to be a transportation service provider in Taiwan.

"We are studying what penalty we will hand out to Uber, and we may eventually demand Uber leaves Taiwan," Chang said. His commission will reach a decision by Aug. 11.

On Tuesday, transportation ministry official Hu Ti-chi told reporters that her agency had been trying to ban Uber's operations in Taiwan, citing concerns over Uber's failure to pay tax on income from ride charges and a lack of protection for users.

She also characterized Uber's competition with local taxi drivers as being "unfair."

Uber together with its Taiwanese drivers have paid some 44 million New Taiwan dollars ($1.38 million) in fines for operating illegally.

Taiwanese media first reported on Tuesday that the Investment Commission is set to kick the U.S. company out of Taiwan, citing unnamed officials.

In response to reports that Uber may be banned in Taiwan, company spokesman Harold Li described the possible government move as "disappointing" in a statement and said the U.S. startup will appeal the decision while continuing its operations.

"Kicking Uber out of Taiwan will not help the development of Taiwan's tech and startup sector and it is a move to help those with vested interests," Li said.

Local taxi drivers have protested against Uber ferociously following the U.S. company's entry into Taiwan in 2013.

Uber has also backed out of China. It agreed to sell its Chinese operation to China's leading tax-hailing app Didi Chuxing, the latter announced on Monday. Uber China will continue to operate under its own brand. This move comes after Chinese authorities announced new regulations on July 28 to oversee the rapidly expanding industry.

Drivers in China now have to provide evidence of at least three years of driving experience and no record of traffic accidents. They will also have to provide customers with official receipts. These rules will take effect from November.