Taiwan Prepares First Regulated Stablecoin Under New Digital Asset Law

Taiwan is preparing to enter the regulated stablecoin arena, but the earliest the country expects to see an officially approved token is late 2026.

The timeline depends on the completion of the Virtual Assets Service Act, a bill that government officials say is close to being finalized after years of fragmented oversight.

Instead of rushing a launch, regulators are designing the rollout around a slow, structured process. Once the law passes, authorities plan to pause activity for six months while they finalize operational standards, licensing rules and supervisory procedures. The goal is to ensure that the first stablecoin enters the market under a fully developed compliance regime rather than an improvised one.

A Cautious Issuer Model

Although the upcoming legislation does not explicitly limit who can issue a stablecoin, both the FSC and Taiwan’s central bank have already aligned on an initial restriction: only established financial institutions will be permitted to launch one at the start. Regulators say this conservative approach reflects a desire to protect monetary stability in the early phase, especially given the importance of tightly managed liquidity in Taiwan’s banking system.

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The framework draws heavily from Europe’s MiCA regulation, which has become the global template for reserve standards, governance expectations and disclosure rules.

Peg Choice Still Unsettled

One unresolved question is whether Taiwan’s first stablecoin will be anchored to the TWD or the USD. A local-currency peg would encourage domestic payments use, while a dollar peg could simplify international adoption. Officials say the decision will be tied to liquidity management and the capital requirements imposed on issuers.

Toward a 2027 Launch Window

If the Act clears the legislature as expected and regulators complete the six-month preparation period without delays, Taiwan could enter 2027 with a fully compliant stablecoin ecosystem. This would place the island among a growing group of jurisdictions pursuing tightly regulated digital-asset frameworks rather than leaving innovation to unfold without oversight.