Taiwan aims to issue a stablecoin as new legislation is passed

Taiwan is moving closer to launching its first regulated stablecoin, expected as early as the end of 2026. This plan depends on the passage of the Virtual Asset Service Act, which is currently being finalized by the FSC and could be approved by the legislature in the next session. The new law will establish an official regulatory framework for the digital asset market, which previously lacked comprehensive oversight.

Once the law takes effect, regulators will implement a six-month transitional period before allowing the issuance of any stablecoins. In the initial stage, the FSC and the central bank have agreed to permit only financial institutions to issue stablecoins, taking a cautious approach similar to the EU’s MiCA regulations.

One point still under discussion is whether the stablecoin will be pegged to the TWD or the USD. If the process goes smoothly, Taiwan could enter 2027 with a fully compliant stablecoin framework.