Taiwan Targets Q1 2027 for Stablecoin Regulation Implementation

Taiwan's Financial Supervisory Commission (FSC) is making progress on its regulatory framework for virtual assets and stablecoins. The commission has been working on nine subsidiary regulations to implement the Virtual Asset Service Act, which was passed in June.

The FSC Chairman Peng Jinlong announced that the detailed stablecoin rules will be published and implemented by the first quarter of 2027. These regulations will require stablecoin issuers to maintain full reserve backing, place reserve assets in trust, and comply with audit and disclosure requirements.

The Virtual Asset Service Act establishes a licensing framework for crypto businesses and requires them to obtain FSC approval before operating. Stablecoin issuers face a separate approval process involving both the FSC and Taiwan's central bank.