Taiwan Plans New Crypto Laws, Paves Way for Stablecoin Issuance

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.

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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.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.