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Taiwan may launch first stablecoin by late 2026
Taiwan could see its first stablecoin launched in the second half of 2026 at the earliest, according to Peng Jin-long, chairman of the Financial Supervisory Commission (FSC).
The timeline depends on the passage of the “Virtual Assets Service Act,” which is set for review by the Cabinet this week.
Peng told lawmakers the bill is expected to be discussed during the current legislative session and could pass in the next, followed by a six-month buffer period before implementation.
It proposed after the European Union’s Markets in Crypto-Assets Regulation and does not require stablecoins to be issued by financial institutions.
However, the FSC and Taiwan’s central bank have agreed that, for now, only financial institutions will be allowed to issue stablecoins.
The Cabinet is scheduled to review the act this week, following three prior meetings that produced a high level of consensus.
🔗 Source: Focus Taiwan
🧠 Food for thought
Implications, context, and why it matters.
Taiwan’s stablecoin framework may face early hurdles from unclear cross-border and offshore stablecoin rules
- The draft Virtual Assets Service Act defines virtual assets, sets permits for service providers, and sets operational standards 1. It also covers stablecoin issuance 1. Public materials do not specify issuer eligibility or reserve custody 2. They also omit redemption rights, audit frequency, or denomination limits 2.
- Issuance is limited to financial institutions at the start 2. Rules do not explain how offshore stablecoins such as USD Coin (USDC) will be treated 2. Shinhan Bank and SCB TechX tested remittances with Taiwan’s largest financial institution 3.
- Without cross-border clarity, Taiwan risks isolating its market or creating gaps that weaken the draft’s consumer protection goals 1.
Compliance and infrastructure vendors can target Taiwanese banks preparing for 2026 stablecoin issuance
- Only financial institutions can issue stablecoins at first 2. Proof-of-reserves auditing is an independent attestation that reserves match liabilities. Vendors for compliance or custody should focus on Taiwanese banks plus payment institutions.
- After the Financial Supervisory Commission (FSC) publishes subordinate regulations, the law takes effect after six months 2. Banks need to start building technical and compliance infrastructure now.
- Visa ran stablecoin pilots with Nium (a cross-border payments company) and with USD Coin (USDC, a dollar-pegged token issued by Circle) 45. Shinhan Bank used Ethereum Virtual Machine (EVM)-compatible frameworks in a proof of concept (PoC) 3, so vendors that offer EVM-compatible infrastructure can prepare Taiwan issuers for future interoperability with regional or global payment networks.
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