TAIPEI (TVBS News) — Taiwan's Financial Supervisory Commission (FSC, 金管會) advanced a comprehensive draft law on virtual asset services Wednesday (Aug. 27), marking a significant step toward cryptocurrency regulation in the island nation. Tong Chen-chang (童政彰), director of the Banking Bureau (銀行局), announced that the legislation was submitted to the Executive Yuan, Taiwan's cabinet, in June and awaits review by the Legislative Yuan, Taiwan's parliament. The proposed law will establish specific regulatory frameworks for digital asset operations once legislative approval is secured.
Japan's Financial Services Agency (FSA) plans to approve the first yen-based stablecoin this fall, setting a regional precedent for digital currency regulation. Taiwan's potential issuance of a New Taiwan dollar stablecoin remains under careful government observation as officials monitor international developments. Tong emphasized that the draft legislation underwent extensive consultation with the Central Bank (CBC, 央行), addressing crucial areas including digital asset auditing, information disclosure requirements, and comprehensive regulatory frameworks. Implementation of these groundbreaking measures depends entirely on securing legislative approval from Taiwan's parliament.
Tong disclosed that one financial institution has expressed interest in issuing a Taiwan-based stablecoin under the proposed regulatory framework. The FSC encourages financial innovation and plans ongoing dialogue with banking institutions following the law's enactment. Tong cautioned about realistic deployment timelines, noting the draft reached the Executive Yuan only in June and depends on legislative approval. Market mechanisms will determine whether the U.S. dollar serves as the system foundation, with the commission establishing frameworks while market forces guide operations. ◼