Taiwan targets 2026 stablecoin launch pending regulatory approval

Taiwan Sets 2026 Target for First Stablecoin

Taiwan's Financial Supervisory Commission (FSC) confirmed plans to launch the region's first regulated stablecoin by the second half of 2026. FSC Chairman Peng Jin-long announced the timeline during a legislative hearing on December 3, 2025. The launch depends on passage of the Virtual Asset Service Act, currently under legislative review.

A Taiwan-issued stablecoin may enter the market in the latter half of 2026 at the earliest. — Peng Jin-long, Chairman, Financial Supervisory Commission

Only Banks Permitted to Issue Initially

The FSC and Taiwan's central bank agreed that only financial institutions will issue stablecoins in the initial phase. This restriction aims to ensure regulatory oversight and consumer protection during the early rollout. The decision between pegging the stablecoin to the US dollar or Taiwan dollar remains unresolved. Regulators are weighing monetary policy implications as part of the pending decision.

Regulatory Framework Mirrors EU Standards

Taiwan's draft legislation draws on the European Union's Markets in Crypto-Assets (MiCA) regulation. The framework establishes licensing requirements, reserve mandates, and consumer safeguards for virtual asset service providers. The bill must pass the current legislative session and complete a six-month implementation period before stablecoin issuance begins. Speculation: if approved on schedule, Taiwan could position itself as a leading regulated crypto market in Asia.

Market Implications for Cross-Border Payments

Industry observers expect the stablecoin to reduce remittance costs and enable faster cross-border transactions. The initiative could reshape Taiwan's financial landscape by offering a regulated alternative to existing cryptocurrencies. The FSC continues consultations with industry stakeholders to finalize technical specifications and compliance requirements before the anticipated 2026 launch.