Taiwan’s FSC outlines regulatory path for bank-issued stablecoins
Taiwan's Financial Supervisory Commission (FSC) plans to allow banks to issue stablecoins as part of a regulatory framework for virtual asset service providers (VASPs). A draft bill is expected in June, aiming to position stablecoins as a bridge between the New Taiwan dollar (TWD) and digital currencies. Stablecoins are designed to provide stability in volatile markets and facilitate seamless virtual asset transactions. They offer benefits such as protection against market volatility and low-cost cross-border transactions. Under proposed regulations, all stablecoins in Taiwan would require FSC approval, with issuers facing strict requirements. The FSC will coordinate with Taiwan's central bank to clarify the distinction between stablecoins and central bank digital currencies (CBDCs). This initiative aligns with global efforts to regulate stablecoins and integrate them into financial systems.
