Crypto Journalist
Amin Ayan
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Taiwan could roll out its first domestically issued stablecoin by the second half of 2026 as lawmakers move forward with legislation to regulate digital assets, though key design choices, including which currency the token will track, remain unresolved.
Key Takeaways:
- Taiwan is targeting a late-2026 launch for its first domestic stablecoin pending passage of a new crypto law.
- Banks will lead initial issuance as regulators coordinate closely with Taiwan’s central bank.
- The choice of peg remains open, with a US dollar tie seen as easier than linking it to the Taiwan dollar.
According to local media, Financial Supervisory Commission chair Peng Jin-long told lawmakers this week that the draft Virtual Assets Service Act has cleared initial cabinet reviews and could pass its third reading in the next legislative session.
Rules specific to stablecoins would follow within six months of approval, pointing to a possible late-2026 release at the earliest.
Taiwan to Let Banks Lead Stablecoin Rollout as Regulators Tighten Controls
The draft law does not confine issuance to banks, but Peng said financial institutions will take the lead in the early stages, reflecting a cautious approach as regulators open the door to domestic digital tokens.
The FSC is coordinating policy development with the Central Bank of the Republic of China (Taiwan), which has long enforced strict controls to keep the Taiwan dollar from circulating overseas.
That constraint is shaping the stablecoin debate. A token pegged to the Taiwan dollar would collide with existing foreign-exchange rules, as the currency is not allowed to circulate offshore.
A US dollar-backed stablecoin, by contrast, would avoid the thorniest regulatory issues and align more closely with global settlement use cases tied to cross-border payments.
Stablecoins, by design, move value across borders with speed and low cost, features that could undercut decades of policy aimed at keeping the local currency onshore and preventing unofficial offshore pricing.
Regulators are now drafting guardrails requiring full reserve backing, strict segregation of client assets and domestic custody to limit risk at launch.
What remains undecided is the anchor currency itself. Peng said the final choice will depend on market demand, with no commitment yet to either the US dollar or the Taiwan dollar.
Taiwan Weighs Adding Bitcoin to National Reserves
As reported, Taiwan’s government is moving closer to integrating Bitcoin into its national reserve strategy, with the island’s Executive Yuan and Central Bank agreeing to evaluate Bitcoin as a potential strategic asset and explore pilot holdings using seized BTC currently awaiting auction.
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 through fake crypto exchange franchises.
The operation, led by Shi Qiren, ran more than 40 storefronts under names like “CoinW” and “BiXiang Technology,” posing as licensed exchanges while secretly funneling investor funds into overseas crypto accounts.
Authorities seized cash, crypto, and luxury assets worth over NT$100 million, while Shi faces up to 25 years in prison for fraud, money laundering, and organized 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 network built investor trust, collected hefty franchise fees, and used “deposit machines” to mimic legitimate exchange operations.
Prosecutors described the scheme as “systematic fraud” that leveraged Taiwan’s crypto curiosity and weak enforcement.
https://cryptonews.com/news/taiwan-targets-late-2026-launch-for-first-domestic-stablecoin/
