Taiwan’s Financial Supervisory Commission plans to issue a draft law on virtual assets in June to allow banks to issue stablecoins

Odaily News The Financial Supervisory Commission (FSC) of Taiwan plans to propose a draft law on virtual asset service providers (VASPs) in June 2025, allowing banks to issue stablecoins for the first time.
Peng Jinlong, chairman of the Financial Supervisory Commission, said that stablecoins will serve as a bridge between legal tender and cryptocurrencies, providing investors with a trading portal. Banking Bureau Director Zhuang Xiuyuan admitted that the stablecoins currently circulating in the market, such as USDC and USDT, are not approved by the competent authorities but are claimed by the industry to be backed by US dollar assets. After the amendment of the law in the future, all stablecoins issued in Taiwan must be approved by the Financial Supervisory Commission, including the qualifications of the issuer and the allocation of reserves.
As for whether stablecoins will move beyond the "virtual" economy and into the "real" economy, Zhuang Xiuyuan said that this involves monetary policy and financial stability issues that need to be discussed with the "central bank". Peng Jinlong said that stablecoins will be jointly managed with the regional "central bank". (Economic Daily)
According to previous news, Peng Jinlong, chairman of the financial regulatory department of Taiwan, China, said on January 9 that he took a cautious and friendly attitude towards the virtual asset market. The draft of the special law on virtual assets has been completed and will soon enter the public hearing process. The draft special law on virtual assets will be submitted to the administrative agency of Taiwan before June 30 this year.