Taiwan to Unveil Draft Bill Allowing Banks to Issue Stablecoins
Taiwan's Financial Supervisory Commission (FSC) will unveil a draft bill in June that proposes allowing banks to issue stablecoins, signaling a move toward regulatory clarity in the virtual asset market.
Taiwan is set to take a significant step toward regulating the cryptocurrency space with the upcoming unveiling of a draft bill for virtual asset service providers (VASPs), slated for June. A key feature of the draft bill is a proposal allowing banks to issue stablecoins, with the Financial Supervisory Commission (FSC) taking a central role in managing these digital assets alongside Taiwan's central bank.
FSC Chairman Peng Jinlong emphasized that the bill aims to enhance Taiwanese investor participation in the virtual asset market, providing a more secure and regulated environment. According to Zhuang Xiuyuan, a director at a Taiwanese bank, all stablecoins issued in Taiwan will require FSC approval, marking a shift from the current self-certification system to one where issuers must meet specific qualifications set by the regulator.
The draft bill also highlights the joint management of stablecoins, where both the banks and Taiwan's central bank will oversee the issuance and regulation of these digital currencies. This framework is part of a broader global conversation on stablecoin regulation, with similar efforts in the U.S., such as the Lummis-Gillibrand Responsible Financial Innovation Act and the Stablecoin TEFRA Act, calling for stricter standards and consumer protections for stablecoin issuers.
Taiwan's approach is expected to include robust anti-money laundering protocols and comprehensive risk assessments, reflecting the growing need for regulatory clarity in the virtual asset space. If passed, the bill could pave the way for more regulated and secure digital asset markets in Taiwan, reinforcing the country's role as a key player in the evolving global crypto landscape.
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