Taiwan is readying itself to enter the regulated stablecoin era. The island’s financial regulator has confirmed that its first home-grown stablecoin could materialize as early as the second half of 2026, once the draft Virtual Assets Service Act clears legislative hurdles and final regulations are issued. The announcement represents a key about-face in Taiwan’s crypto […]Taiwan is readying itself to enter the regulated stablecoin era. The island’s financial regulator has confirmed that its first home-grown stablecoin could materialize as early as the second half of 2026, once the draft Virtual Assets Service Act clears legislative hurdles and final regulations are issued. The announcement represents a key about-face in Taiwan’s crypto […]

Bitcoin-Friendly Taiwan Aims for 2026: Regulated Stablecoin Launch on Horizon

2025/12/04 11:00
  • Taiwan plans to issue its first regulated stablecoin in the second half of 2026, under a new legal regime.
  • The stablecoin will be governed by the upcoming Virtual Assets Service Act (VASA), currently under review, which will regulate issuers and service providers.
  • Regulators have yet to decide whether the coin will be pegged to the Taiwan dollar (TWD) or the U.S. dollar (USD).

Taiwan is readying itself to enter the regulated stablecoin era. The island’s financial regulator has confirmed that its first home-grown stablecoin could materialize as early as the second half of 2026, once the draft Virtual Assets Service Act clears legislative hurdles and final regulations are issued. The announcement represents a key about-face in Taiwan’s crypto policy and places the country in an enviable position to be a major player in the regulated digital asset landscape of Asia.

Source: Focus Taiwan

Legislation & Regulatory Framework in Progress

The VASA drafted by the FSC serves as the backbone of Taiwan’s stablecoin plan. The said Act wants to bring all entities dealing in virtual assets under licensing, capital requirements, and transparency and consumer-protection rules.

Under the contemplated framework, stablecoins will be viewed as fiat-pegged digital assets to be regulated, with reserve requirements, custody rules, and oversight by the country’s banking and financial regulators (FSC + CBC).

During a legislative hearing in early December 2025, FSC Chair Peng Jin-long said that the bill for stablecoin legislation is expected to be introduced in the next legislative session, and will have a six-month buffer after passage before going live, therefore making late 2026 the soonest debut.

Also Read: Taiwan Cracks Down on the Biggest $72M Crypto Laundering Scheme

Issuance Model: Banks First, Currency Peg Undecided

First, stablecoins will be issued only by licensed banks or financial institutions, a design that will protect monetary stability and prevent uncontrolled private issuance.

One of the most salient open questions is to which currency the stablecoin will be pegged. According to regulators, this could be either the Taiwan dollar (TWD) or the U.S. dollar (USD). A USD-pegged coin might allow for more international interoperability, while one pegged to the TWD would do more to underpin domestic payments and policy goals.

Why This Matters: Stability, Innovation & Financial Oversight

For Taiwan, the launch of a regulated stablecoin means addressing various priorities all at once: reconciling financial innovation with monetary control, offering a compliant digital-asset infrastructure, and potentially giving Taiwanese banks and businesses a homegrown stablecoin alternative instead of relying solely on foreign-issued tokens.

The regulators require full reserves, domestic custody, and regulated issuance via banks to avoid the risks associated with unbacked or loosely backed “stable” tokens, reassure depositors, and maintain monetary sovereignty.

Also Read: Taiwan on a Budget: How an eSIM Can Save You Money?

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