Taiwan stablecoin expected to launch in the second half of 2026! FSC: Priority issuance to financial institutions

FSC Chairman Jin-Long Peng stated during a legislative session on 12/3 that if the “Virtual Asset Service Act” progresses smoothly, Taiwan’s locally issued stablecoins could be officially launched as early as the second half of 2026, with financial institutions responsible for issuance during the initial phase. Relevant government agencies have already reached a high level of consensus, but the bill must still complete review procedures and a six-month buffer period before coming into effect.

Taiwan’s Stablecoin May Launch as Early as the Second Half of 2026

Peng stated that the prerequisite for launching locally issued stablecoins in Taiwan is the successful passage of the “Virtual Asset Service Act.” He pointed out that if the bill is included in the agenda for this legislative session and passes its third reading in the next session, following the current timetable, the earliest possible official launch of the Taiwan stablecoin would be in the second half of 2026.

Legislative Progress Revealed, “Virtual Asset Service Act” to Be Submitted for Executive Yuan Review

Peng said that the bill is expected to be submitted to the Executive Yuan for deliberation this week. Three inter-ministerial meetings have already been held, and there is a “very high level of consensus.” If the Executive Yuan reviews and includes it in the Legislative Yuan’s agenda, the legislative process can then begin.

Six-Month Buffer Period Required After Bill Passes Before Official Implementation

Peng added that after the bill passes its third reading, the FSC will also need to announce related sub-laws. He emphasized that, according to the plan, a six-month buffer period will be reserved before official implementation. In other words, even if the legislation progresses smoothly, the market will not see stablecoins launched immediately.

Draft References EU’s MiCA, Initially Restricts Issuance to Financial Institutions

Regarding system design, Peng pointed out that the draft of the “Virtual Asset Service Act” draws on the EU’s MiCA and does not explicitly require that stablecoin issuers must be financial institutions. However, he also stressed that, based on risk control principles, the FSC and the central bank have reached a consensus that, in the initial phase, stablecoin issuance will be limited to financial institutions to reduce market risk.

This article Taiwan Stablecoin Expected in Second Half of 2026! FSC: Issuance Initially Reserved for Financial Institutions first appeared on Chain News ABMedia.