Taiwan could introduce its first domestic stablecoin as early as June or July 2026, according to Financial Supervisory Commission (FSC) Chairman Peng Jin-lung, who addressed lawmakers yesterday regarding the country's digital asset regulations.
According to local reports, the FSC is preparing to submit draft legislation for regulating virtual asset service providers to the Cabinet for review this week, with subsequent submission to the legislature. If the bill progresses without delays, Peng said the legislative process could conclude in the first half of 2025, allowing implementation in the second half.
"The introduction of a domestic stablecoin would mark an important milestone in bringing virtual-asset activities into a fully regulated environment," Peng told the legislature's Finance Committee, the Taipei Times reported on Wednesday.
Under the proposed framework, companies handling virtual assets would need to register or obtain licenses, meet capital and operational requirements, implement anti-money laundering controls, and comply with consumer protection and reporting standards.
The FSC and Taiwan's central bank have agreed on the implementation approach, with initial issuance restricted to licensed financial institutions – a constraint designed to manage risks and protect user funds. The agencies continue coordinating on reserve requirements, audit mechanisms, and investor protection rules.
Authorization for stablecoin issuance will only proceed after finalization of these regulations, Peng explained, positioning mid-2026 as the earliest possible launch window for a New Taiwan dollar-backed token.
The initiative follows several years of rapid cryptocurrency trading growth and mounting concerns about financial stability. Industry observers view regulated stablecoins as foundational to developing compliant digital finance products, enhancing payment efficiency, and strengthening anti-money laundering controls.
Local banks have expressed interest in issuing stablecoins but stress that interoperability across institutions would be essential for practical financial applications.
Peng indicated Taiwan's regulatory approach would emphasize prudential supervision, consumer protection, and alignment with international standards, though specific details about initial issuers and technical specifications remain under discussion.
