Taiwan is gearing up to overhaul its approach to virtual asset regulation, with the Financial Supervisory Commission (FSC) planning to introduce a new law by June 2025.
This legislation could, for the first time, permit local banks to issue stablecoins, signaling a significant step toward integrating digital assets into the financial system.
Stablecoins currently used in Taiwan, such as USDT and USDC, have not yet received regulatory approval, though they are widely circulated due to their backing by U.S. dollar assets.
The proposed law will require all stablecoins issued in Taiwan to meet strict standards, including issuer qualifications and reserve requirements, ensuring greater oversight and transparency. FSC Chairman Peng Jinlong highlighted that stablecoins could provide a secure gateway between fiat currency and crypto trading for investors.
To complement this initiative, Taiwan has already implemented new anti-money laundering (AML) regulations for virtual asset service providers (VASPs), effective January 1. These rules mandate compliance registration and impose penalties, including hefty fines and prison terms, for non-compliance. VASPs must establish strong internal controls, protect customer assets, and maintain detailed records for at least five years.
These measures, coupled with additional requirements for data security and customer dispute resolution, aim to align Taiwan’s crypto industry with global standards while fostering trust among traditional investors. As Taiwan finalizes its framework, it signals a cautious but forward-thinking approach to integrating digital assets into the economy.
Binance has decided to halt spot trading of Tether (USDT) within the European Economic Area (EEA) as it works to comply with the EU’s new crypto regulations under MiCA (Markets in Crypto-Assets Regulation).
California is taking a bold step toward protecting cryptocurrency investors, with new amendments transforming an existing financial regulation bill into a dedicated digital assets framework.
Japan’s Financial Services Agency (FSA) is working on a proposal to amend existing financial laws, aiming to bring cryptocurrencies under the same regulatory framework as traditional financial instruments.
The U.S. Commodities Futures Trading Commission (CFTC) has taken a significant step by revoking a previous directive that had suggested stricter oversight of digital asset derivatives.