Overview
- The draft Virtual Asset Service Act has cleared initial cabinet review and could complete its legislative readings next session, according to FSC Chair Peng Jin-long.
- Stablecoin-specific regulations will be issued after the law passes, followed by a six-month buffer before the framework takes effect.
- The FSC and Taiwan’s central bank have agreed that only licensed financial institutions will handle initial issuance.
- The rules being drafted emphasize full-reserve backing, domestic custody, and strict segregation of user assets.
- Regulators have not decided between a Taiwan dollar or U.S. dollar peg, with existing controls on offshore TWD use complicating a local-currency option.