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Taipei, December 3, 2025, 08:30
Taiwan’s Financial Supervisory Commission (FSC) Chair Peng Jin-long dropped a bombshell this morning: the island’s first fully regulated domestic stablecoin, pegged 1:1 to the New Taiwan Dollar, could hit the market as early as the second half of 2026.
Speaking at a closed-door industry briefing, Peng confirmed that the long-awaited regulatory framework, heavily inspired by the European Union’s Markets in Crypto-Assets (MiCA) regulation, has reached final consensus between the FSC and the Central Bank of the Republic of China (Taiwan).
The Cabinet is scheduled to review the draft bill this week, with lawmakers targeting passage in the first half of 2026.
Key Takeaways
- Taiwan’s first domestic stablecoin is on a fast track for H2 2026 launch
- MiCA-inspired rules will allow non-bank issuers, a rarity in Asia
- Full fiat reserves, real-time audits, and FSC-Central Bank co-oversight are non-negotiable
- The move could make Taiwan the most crypto-friendly developed economy in Asia by 2027
- Investors and issuers should prepare compliance programs now, licenses won’t wait
Background on Taiwan’s Crypto Regulatory Evolution
Taiwan has moved swiftly since January 2025, when its Virtual Asset Service Provider (VASP) regime officially took effect.
In June 2025, the FSC floated initial rules allowing only banks and electronic payment institutions to issue stablecoins. Today’s announcement marks a major pivot: non-bank entities, including fintech startups and trust companies, will eventually be permitted to issue under strict licensing.
Key Details of the Stablecoin Framework
The new rules mirror MiCA’s core pillars:
- 100% backing by high-quality liquid assets (primarily TWD deposits or government bonds)
- Mandatory segregation of issuer and reserve custodian
- Real-time reserve attestation and monthly public reporting
- Full compliance with Taiwan’s AML/CFT regime
- FSC pre-approval for issuance amount and reserve management policy
While the very first issuers will likely be banks or their subsidiaries for risk-control reasons, Peng stressed that “the door is explicitly open for qualified non-bank players once the ecosystem matures.”
Timeline and Path to Launch
- December 2025: Cabinet review
- H1 2026: Legislative passage (target)
- Q3 2026 onward: First licenses expected to be granted
- H2 2026: Inaugural TWD-pegged stablecoin goes live
Industry sources tell CoinDesk that at least three major Taiwanese financial groups and one international consortium have already entered sandbox discussions.
Implications for Innovation, Investors, and the Market
The framework is being hailed as one of the most progressive in Asia. By allowing non-bank issuance and explicitly modeling itself on MiCA, Taiwan is positioning itself as a regional sandbox rival to Singapore and Hong Kong, without the outright bans seen elsewhere.
Local fintech executives say a TWD stablecoin will slash remittance costs for the island’s 700,000+ overseas workers, supercharge DeFi liquidity in Mandarin-speaking markets, and give Taiwanese exchanges a compliant on-ramp/off-ramp that avoids U.S. dollar dominance.
Conclusion
With today’s announcement, Taiwan has signaled it is done playing catch-up.
A domestically backed, fully regulated stablecoin by mid-2026 would mark the clearest sign yet that Asia’s crypto winter is thawing, and that Taipei intends to write the next chapter.
Read Next:
- STBL Protocol Launches Stablecoin 2.0
- Stablecoins for Carbon Credits
- Rise Stablecoin Payroll Review 2026
FAQs:
1. When is Taiwan launching its first domestic stablecoin?
The FSC confirmed on December 3, 2025 that the first TWD-pegged stablecoin is targeted for the second half of 2026, assuming the bill passes in H1 2026.
2. Will only banks be allowed to issue stablecoins in Taiwan?
Initially yes for risk-control reasons, but the final framework explicitly permits licensed non-bank issuers once safeguards are proven effective.
3. Is Taiwan copying Europe’s MiCA regulation?
Yes, Taiwan’s rules adopt MiCA’s core requirements: 100% fiat/reserve backing, segregated custody, real-time attestation, and strict consumer protections.
4. What is the purpose of a Taiwanese stablecoin?
To provide a compliant, low-volatility bridge between TWD fiat and crypto ecosystems, reduce reliance on foreign stablecoins, and cut cross-border remittance costs.
5. How soon can companies apply for a stablecoin license in Taiwan?
Applications are expected to open immediately after legislative passage, with the first batch of licenses likely awarded in Q3 2026.
