Key Takeaways
- Taiwanese ministers will review a draft crypto bill this week.
- The proposed legislation would establish a licensing regime for crypto exchanges as stablecoin issuers.
- TWD stablecoins could be approved by the Financial Supervisory Commission (FSC) as early as June next year.
Taiwan is set to take an important step toward regulating the cryptocurrency sector this week, when the Cabinet is expected to review a draft bill ahead of a vote in the Legislative Yuan.
Once approved, Taiwan’s crypto bill could pave the way for regulated domestic stablecoins as early as June 2026, Financial Supervisory Commission (FSC) Chairman Peng Jin-lung told lawmakers on Wednesday, Dec. 3.
Taiwan Crypto Regulation Enters Final Stretch
Taiwan’s crypto regulation journey so far has followed a well-established pattern.
In 2021, the FSC introduced anti-money laundering (AML) requirements for exchanges, bringing the sector under regulatory oversight for the first time.
Two years later, the government enshrined the principle of FSC oversight in law.
A subsequent amendment to the Money Laundering Control Act granted the regulator new powers to shut down platforms that didn’t register for AML purposes.
As the conversation evolved beyond AML, initial proposals for a full licensing regime surfaced in 2023, by which point stablecoins had emerged as a major area of interest.
TWD Stablecoins Incoming
Rather than developing separate stablecoin regulation, as the U.S. has done, Taiwan’s approach more closely resembles the EU’s Markets in Crypto Assets (MiCA) regulation.
The bill currently under consideration would create a comprehensive legal framework for exchanges, stablecoin issuers, and other crypto asset service providers, with rules covering AML, custody and reserve requirements, and consumer protection measures.
At a meeting of the Legislative Yuan’s Economics Committee, FSC Chairman Peng said the regulator had reached a consensus with Taiwan’s central bank on New Taiwan Dollar-pegged stablecoins, local media reported.
At first, only licensed financial institutions will be approved to issue TWD-backed coins, Peng said. “The introduction of domestic stablecoins would mark an important milestone in bringing virtual-asset activities into a fully regulated environment,” he added.
Taiwanese ministers will review the draft crypto bill this week, teeing up a vote in the Legislative Yuan imminently, Peng told lawmakers.
Assuming a smooth passage through the chamber, he predicted that the first TWD stablecoins could be approved as early as June or July next year.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
