- Taiwan plans first regulated stablecoin launch in second half of 2026.
- Financial Supervisory Commission says Virtual Assets Service Act on track.
- Only financial institutions will issue stablecoins in initial stage.
Taiwan has confirmed plans to launch its first regulated stablecoin in the second half of 2026. Financial Supervisory Commission (FSC) Chairman Peng Jin-long announced the timeline during a legislative hearing on Wednesday.
The stablecoin will enter the market based on the current schedule for passing related legislation. Peng stated the Virtual Assets Service Act should be placed on the agenda during the current legislative session.
The bill is expected to pass during the next session if it progresses smoothly through the Legislative Yuan. The Cabinet will review the act in the next few days.
Taiwan stablecoin requires six-month buffer period
The FSC will announce subordinate regulations after the bill passes. An extra six-month buffer period will be needed before the law is passed. This timeline puts the earliest possible launch in late 2026.
Peng said three prior cabinet meetings produced a “high level of consensus” on the draft legislation. The proposed bill draws on the European Union’s Markets in Crypto-Assets Regulation.
The draft bill does not explicitly require stablecoins to be issued by financial institutions. From a risk-management standpoint, the FSC and the central bank have agreed that only financial institutions will be permitted to issue them in the initial stage.
Currency backing decision remains unresolved
Taiwan regulators have not yet decided on the currency the token will be tied to. Peng told lawmakers the stablecoin could be pegged to the U.S. dollar or the Taiwan dollar. The choice depends on market demand.
A U.S. dollar-backed coin would bypass the most complex issue in Taiwan’s financial system: strict limits on exporting the Taiwan currency offshore. Taiwan’s currency cannot legally circulate offshore.
Regulators are currently drafting rules based on full reserve backing, strict segregation of assets and domestic custody requirements. The basic question of what currency Taiwan’s first stablecoin will represent remains unresolved.
Taiwan maintains cautious cryptocurrency approach
Taiwan classifies digital assets as “virtual commodities” rather than legal tender. Crypto ownership and trading are legal. The government does not permit cryptocurrency use for retail payments or government services.
Taiwan implemented strict anti-money laundering (AML) regulations for Virtual Asset Service Providers (VASPs) beginning January 1, 2025. The September 2025 compliance deadline requires all VASPs to register with the FSC.
VASPs must undergo rigorous compliance checks. Violations face penalties of up to NT$5 million and two years imprisonment. These requirements align with the Financial Action Task Force (FATF) global standards.
The regulations include Know Your Customer (KYC) procedures, transaction monitoring, and suspicious activity reporting. Banks are explicitly prohibited from accepting cryptocurrency or providing credit card services for crypto purchases.
Global stablecoin developments ramp up
Major European financial institutions led by BNP Paribas and ING announced plans to develop a euro-pegged stablecoin on December 2, 2025. The consortium includes Credit Suisse, KBC, DekaBank, Danske Bank, SEB, Caixabank, and Raiffeisen Bank International.
European Central Bank President Christine Lagarde has expressed concerns that privately issued stablecoins could divert funds from regulated banking. She stated these pose risks to monetary policy and financial stability.
Sony Group announced plans to issue a U.S. dollar-denominated stablecoin in 2025 for use on its digital platform. The video game and technology giant will allow purchases of games and anime through the stablecoin.
This initiative will be limited to the United States. Sony’s stablecoin launch follows the GENIUS Act’s enactment.
Taiwan’s regulated approach positions the country among jurisdictions developing frameworks for digital asset issuance. The 2026 timeline gives regulators time to finalize currency backing decisions and establish comprehensive oversight rules.
