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A Taiwan-issued stablecoin may enter the market in the latter half of 2026 at the earliest based on the current timeline for passing related legislation, Financial Supervisory Commission (FSC) Chairman Peng Jin-long said Wednesday, as Focus Taiwan reported.
At a legislative hearing, Peng said the stablecoin's proposed legal basis, the "Virtual Assets Service Act," should be placed on the agenda of the current legislative session and passed during the next session if the bill progresses smoothly through the Legislative Yuan. Once the FSC announces subordinate regulations, an additional six-month buffer period will be required before the law takes effect, he said. The Cabinet is scheduled to review the act this week, following three prior meetings that Peng said produced a "high level of consensus." A stablecoin is a cryptocurrency designed to have a stable value, often by being pegged to a fiat currency or other asset. Peng said the draft bill draws on the European Union's Markets in Crypto-Assets Regulation and does not explicitly require stablecoins to be issued by financial institutions. From a risk-management standpoint, however, the FSC and the central bank have agreed that only financial institutions will be permitted to issue them in the initial stage. (ANI)
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