Taiwan Eyes First Stablecoin Debut In 2026 As Regulatory Framework Advances
As the sector continues to achieve international momentum, Taiwanese authorities have introduced {that a} regionally issued stablecoin could possibly be launched subsequent 12 months, pending the upcoming approval of the nation’s regulatory crypto framework and associated laws.
First Local Stablecoin To Debut Next Year
On Wednesday, Taiwan’s Financial Supervisory Commission (FSC) Chairman Peng Jin-long revealed that the island’s first regulated stablecoin may debut within the latter half of 2026, native information outlet Focus Taiwan reported.
The FSC chair affirmed that the Virtual Assets Service Act (VASA), which includes stablecoin regulation, could possibly be handed throughout its third listening to within the subsequent legislative session, scheduled for this week, after clearing preliminary critiques with a “high degree of consensus.”
After the framework’s approval, stablecoin-centered laws can be developed inside six months, setting the launch of a regionally issued token pegged to the New Taiwan Dollar (NTD) or the US Dollar (USD) to the second half of the 12 months.
The VASA helps the efforts by Taiwanese authorities to ascertain a complete crypto framework that promotes trade progress and safeguards traders. Last 12 months, the FSC introduced an overhaul of the Anti-Money Laundering (AML) framework to incorporate crypto companies, introducing stricter AML tips for Virtual Asset Service Providers (VASPs) and requiring all crypto companies to finish the AML registration by September 2025.
In January, Peng stated that traders may have a “handy” entrance to crypto belongings sooner or later by way of stablecoins, which may function a bridge between the nation’s authorized tender and digital foreign money.
In March, the FSC revealed the finalized draft of its landmark crypto laws, which the VASA’s draft proposed authorizing banks to subject stablecoins pegged to the New Taiwan Dollar or the US Dollar.
Meanwhile, Premier Cho Jung-tai and Central Bank Governor Yang Chin-long just lately expressed help for a proper Bitcoin (BTC) coverage, pledging to check the flagship cryptocurrency as a strategic reserve asset, speed up pro-BTC rulemaking, and pilot treasury publicity by way of government-seized belongings.
Taiwan Sets Financial Institutions’ Role
At the legislative listening to, the FSC’s chair highlighted that the invoice’s draft attracts from the European Union (EU)’s Markets in Crypto-Assets Regulation (MiCA). He defined that the Virtual Assets Service Act doesn’t require stablecoins to be issued completely by monetary establishments, which has been a divisive matter in different jurisdictions.
As reported by Bitcoinist, South Korea’s long-awaited stablecoin laws could possibly be delayed till subsequent 12 months because the Korean Financial Services Commission clashes with the Bank of Korea (BOK) over the function of banks within the sector.
An area information media outlet just lately famous that the BOK and regulators agree that monetary establishments have to be concerned within the issuance of won-pegged tokens, however differ on the extent of their function.
The central financial institution is pushing for a consortium of banks proudly owning a minimum of 51% of any stablecoin issuer looking for regulatory approval. Meanwhile, regulators are involved that giving a majority stake to banks may scale back participation from tech companies and restrict the market’s innovation. Earlier this week, authorities set December 10 because the deadline for the federal government to ship a draft invoice.
Unlike South Korea’s monetary authorities, Focus Taiwan reported that the regulator and the central financial institution have agreed that solely monetary establishments might be allowed to subject stablecoins within the preliminary stage to scale back danger administration, suggesting that corporations may be part of at a later stage of the venture.
