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Taiwan Targets Late-2026 Launch for First Domestic Stablecoin

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Taiwan might roll out its first domestically issued stablecoin by the second half of 2026 as lawmakers transfer ahead with laws to manage digital property, although key design decisions, together with which foreign money the token will monitor, stay unresolved.

Key Takeaways:

  • Taiwan is focusing on a late-2026 launch for its first home stablecoin pending passage of a brand new crypto regulation.
  • Banks will lead preliminary issuance as regulators coordinate carefully with Taiwan’s central financial institution.
  • The alternative of peg stays open, with a US greenback tie seen as simpler than linking it to the Taiwan greenback.

According to local media, Financial Supervisory Commission chair Peng Jin-long instructed lawmakers this week that the draft Virtual Assets Service Act has cleared preliminary cupboard evaluations and will move its third studying within the subsequent legislative session.

Rules particular to stablecoins would comply with inside six months of approval, pointing to a potential late-2026 launch on the earliest.

Taiwan to Let Banks Lead Stablecoin Rollout as Regulators Tighten Controls

The draft regulation doesn’t confine issuance to banks, however Peng stated monetary establishments will take the lead within the early phases, reflecting a cautious method as regulators open the door to home digital tokens.

The FSC is coordinating coverage improvement with the Central Bank of the Republic of China (Taiwan), which has lengthy enforced strict controls to maintain the Taiwan greenback from circulating abroad.

That constraint is shaping the stablecoin debate. A token pegged to the Taiwan greenback would collide with present foreign-exchange guidelines, because the foreign money shouldn’t be allowed to flow into offshore.

A US dollar-backed stablecoin, in contrast, would keep away from the thorniest regulatory points and align extra carefully with international settlement use instances tied to cross-border funds.

Stablecoins, by design, transfer worth throughout borders with pace and low value, options that would undercut many years of coverage geared toward retaining the native foreign money onshore and stopping unofficial offshore pricing.

Regulators at the moment are drafting guardrails requiring full reserve backing, strict segregation of shopper property and home custody to restrict danger at launch.

What stays undecided is the anchor foreign money itself. Peng stated the ultimate alternative will rely on market demand, with no dedication but to both the US greenback or the Taiwan greenback.

Taiwan Weighs Adding Bitcoin to National Reserves

As reported, Taiwan’s authorities is moving closer to integrating Bitcoin into its nationwide reserve technique, with the island’s Executive Yuan and Central Bank agreeing to judge Bitcoin as a possible strategic asset and discover pilot holdings utilizing seized BTC at present awaiting public sale.

In August, Taiwanese prosecutors indicted 14 individuals in the nation’s largest crypto money-laundering case, exposing a NT$2.3 billion ($75 million) fraud that deceived over 1,500 victims by faux crypto trade franchises.

The operation, led by Shi Qiren, ran greater than 40 storefronts beneath names like “CoinW” and “BiXiang Technology,” posing as licensed exchanges whereas secretly funneling investor funds into abroad crypto accounts.

Authorities seized money, crypto, and luxurious property value over NT$100 million, whereas Shi faces as much as 25 years in jail for fraud, cash laundering, and arranged crime.

The group’s success hinged on exploiting regulatory blind spots in Taiwan’s crypto oversight. By claiming false approval from the Financial Supervisory Commission, the community constructed investor belief, collected hefty franchise charges, and used “deposit machines” to imitate respectable trade operations.

Prosecutors described the scheme as “systematic fraud” that leveraged Taiwan’s crypto curiosity and weak enforcement.

The submit Taiwan Targets Late-2026 Launch for First Domestic Stablecoin appeared first on Cryptonews.

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