As the sector continues to gain momentum globally, Taiwanese authorities have announced that a locally issued stablecoin could launch next year, pending imminent approval of the country’s crypto regulatory framework and related legislation.
The first local stablecoin will debut next year
On Wednesday, Taiwan Financial Supervisory Commission (FSC) Chairman Peng Jin-long revealed that the island’s first regulated stablecoin could debut in the second half of 2026, local news outlet Focus Taiwan reported.
The FSC chairman claimed that the Virtual Asset Services Act (VASA), which incorporates regulation of stablecoins, could pass in its third hearing during the next legislative session, scheduled for this week, after achieving a “high level of consensus” during initial reviews.
After the framework is approved, regulations focused on the stablecoin would be developed within six months, setting the launch of a locally issued token pegged to the New Taiwan Dollar (NTD) or the US Dollar (USD) in the second half of the year.
VASA supports Taiwan authorities’ efforts to establish a comprehensive crypto framework that promotes the growth of the sector and protects investors. Last year, the FSC announced an overhaul of the anti-money laundering (AML) framework to include crypto businesses, introducing stricter AML guidelines for virtual asset service providers (VASPs) and requiring all crypto businesses to complete AML registration by September 2025.
In January, Peng said investors could have “convenient” access to crypto assets in the future through stablecoins, which could serve as a bridge between the country’s legal tender and virtual currency.
In March, the FSC released the finalized draft of its landmark crypto legislation, with VASA’s draft proposing to allow banks to issue stablecoins pegged to the New Taiwan Dollar or the US Dollar.
Meanwhile, Prime Minister Cho Jung-tai and central bank governor Yang Chin-long recently expressed support for a formal Bitcoin (BTC) policy, pledging to study the flagship cryptocurrency as a strategic reserve asset, accelerate the development of pro-BTC rules, and pilot treasury exposure via government-seized assets.
Taiwan defines the role of financial institutions
During the legislative hearing, the FSC Chairman highlighted that the bill is inspired by the European Union (EU) Crypto-Asset Markets Regulation (MiCA). He explained that the Virtual Asset Services Act does not require stablecoins to be issued exclusively by financial institutions, which has been a point of contention in other jurisdictions.
As Bitcoinist reported, South Korea’s long-awaited stablecoin legislation could be delayed until next year as the Korea Financial Services Commission clashes with the Bank of Korea (BOK) over the role of banks in the sector.
A local media outlet recently noted that the BOK and regulators agree that financial institutions should be involved in issuing won-pegged tokens, but differ on the extent of their role.
The central bank is pushing for a consortium of banks to own at least 51% of any stablecoin issuer seeking regulatory approval. At the same time, regulators fear that giving majority ownership to banks could reduce the participation of technology companies and limit market innovation. Earlier this week, officials set a December 10 deadline for the government to submit a bill.
Unlike South Korean financial authorities, Focus Taiwan reported that the regulator and the central bank agreed that only financial institutions would be allowed to issue stablecoins in the initial phase to reduce risk management, suggesting that companies could join at a later stage of the project.
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