Taiwan is preparing for a major step in its digital finance landscape as lawmakers move toward introducing comprehensive crypto regulations. These efforts could result in the launch of the country’s first state-approved stablecoin in the second half of 2026, according to recent comments from one of Taiwan’s top financial regulators.
Draft Law Paves the Way for Stablecoin Launch
Financial Supervisory Commission (FSC) Chair Peng Jin-lon said that, based on the expected timetable for passing new legislation, Taiwan could see its first stablecoin enter the market in late 2026. The proposal, known as the Virtual Assets Service Act, is expected to be discussed in the country’s next legislative session.
Once approved, the law would require a six-month implementation period. This buffer will allow regulators and financial institutions to prepare for the introduction of a local stablecoin, which may be pegged either to the Taiwan dollar or the United States dollar. As of now, no regulated entity in Taiwan has issued a stablecoin of any kind.
Regulations Inspired by Europe’s MiCA
Peng confirmed that the draft legislation draws significant influence from Europe’s Markets in Crypto-Assets framework. The new rules aim to bring greater clarity to the country’s growing digital asset sector.
Initially, only regulated institutions will be permitted to issue stablecoins. However, the FSC has indicated that non-financial companies may be allowed to participate in the future once the regulatory environment matures. This phased approach is designed to minimise systemic risk during the early stages of adoption.
Push for Stronger Oversight After AML Cases
Taiwan began tightening oversight of crypto companies last year after alleged Anti-Money Laundering violations involving MaiCoin and BitoPro. Despite stricter monitoring, no legally approved stablecoin has yet been launched in the country.
Authorities believe that establishing clearer rules for virtual asset providers will support safer innovation and encourage mainstream use of digital assets.
Government Reviews Bitcoin Held by Authorities
Alongside efforts to regulate stablecoins, Taiwan is also reviewing the total amount of Bitcoin that has been confiscated in criminal cases. The evaluation has prompted speculation that the government could be considering the creation of a strategic crypto reserve.
Taiwanese lawmaker Ju-Chun urged the government in May to add Bitcoin to its national reserves as a safeguard against economic uncertainty. The country currently holds reserves primarily in gold and United States Treasury bonds, with no allocation to crypto assets. Other nations, including the United States, have introduced policies that support the idea of holding digital assets as part of broader reserve strategies.
A Growing Shift Toward Digital Asset Adoption
With both regulatory reforms and discussions around national reserves underway, Taiwan is positioning itself for deeper involvement in the global digital asset market. The launch of a locally issued stablecoin in 2026 would mark a significant milestone in its financial modernisation efforts.
