Taiwan Eyes First Regulated Stablecoin by 2026

Taiwan's Financial Supervisory Commission announced Wednesday that the island could launch its first regulated stablecoin as early as the second half of 2026, contingent on the swift passage of pending cryptocurrency legislation.

Financial Supervisory Commission Chair Peng Jinlong told lawmakers that the Virtual Assets Service Act, which includes provisions for stablecoin issuance, has cleared initial cabinet reviews and could receive final approval in the next legislative session. Once enacted, regulators would develop specific guidelines within six months, paving the way for the token's debut. The framework draws inspiration from the European Union's Markets in Crypto-Assets regulation, aiming to foster industry growth while protecting investors.

The proposed stablecoin would be pegged to either the New Taiwan Dollar or the US dollar, though regulators have not yet finalized the choice. Peng noted that the decision hinges on market demand and compliance with existing foreign exchange controls, which restrict the offshore circulation of the local currency. A New Taiwan Dollar-backed token could challenge these longstanding policies by enabling faster cross-border payments, a...