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Taiwan Nears Final Vote on Crypto Law, Targeting Late-2026 Launch of First Regulated Stablecoin

Early issuance would be limited to licensed financial institutions to keep risk in check.

Overview

  • FSC Chair Peng Jin-long told lawmakers the Virtual Assets Service Act could clear its third reading this week, setting up final passage.
  • Following enactment, regulators plan a six-month window to draft stablecoin rules covering reserves, custody and other safeguards.
  • Authorities have agreed that only financial institutions will issue in the initial phase, with potential for broader participation later.
  • The peg has not been chosen, with options including the New Taiwan dollar or the U.S. dollar given existing controls on offshore TWD use.
  • Taiwan has tightened AML oversight with VASP registration due by September 2025, and senior officials are studying limited Bitcoin policy initiatives.