Taiwan Moves Toward Launch of Local Stablecoin in Late 2026

• Taiwan targets first locally regulated stablecoin rollout in the second half of 2026.
• Draft VASP law advanced, and stablecoin rules may follow within six months of passage.
• Backing currency remains undecided, with USD or TWD still under review by regulators.

Taiwan is moving toward its first locally regulated stablecoin, with officials signalling a possible debut in the second half of 2026. The plan depends on the passage of a draft Virtual Assets Service Act and follow-on rules for stablecoins. Regulators have not decided what currency the token would track, leaving a key design choice unresolved.

Financial Supervisory Commission Chair Peng Jin-long highlighted that the draft act has cleared initial cabinet reviews. He said it could move through further legislative steps in the next session. Stablecoin rules would follow within six months of passage, which points to late 2026 as the earliest possible launch window.

Taiwan Races to Match Asia’s Stablecoin Rulebook

The timeline matters because Taiwan is trying to catch up with regional peers that already have stablecoin rules in place or near completion. Hong Kong’s fiat-referenced stablecoin issuer regime took effect on August 1, 2025, and requires licensing for issuers. Its regulator has also released implementation guidance for the new framework.

Japan already restricts the issuance of certain fiat-linked stablecoins to licensed entities such as banks, trust companies, and fund transfer providers. That structure has been cited as a high-oversight model in Asia. Taiwan’s regulators have signalled a similar preference by pointing to financial institutions as early leaders, even though the draft act does not formally limit issuers to banks.

Peng said the Financial Supervisory Commission and Taiwan’s central bank have agreed that financial institutions would lead issuance in the initial stage. The stated aim is to begin within a supervised environment and reduce operational risk. That choice also aligns with Taiwan’s cautious posture toward new payment rails.

The backing currency is still undecided. Peng said it may track USD or TWD based on demand, but no call is final yet. The peg decision carries policy weight because stablecoins are often used for cross-border settlement. 

A U.S. dollar peg would avoid the hardest issue for Taiwan’s financial system, which is controlling offshore use of the local currency. A New Taiwan dollar peg would raise tougher questions about how a token could circulate beyond the island.

Regulators are drafting stablecoin rules around full reserve backing. They are also working on strict segregation of assets and domestic custody requirements. 

The policy effort takes place in a region where stablecoins already play an outsize role in crypto markets and some payment flows. Offshore stablecoins dominate liquidity in many venues because they are widely accepted and easy to settle.

Related: Bolivia Stops Crypto Ban as Stablecoins Enter National Banks

Taiwan Weighs Bitcoin in Reserves

Taiwan’s move lands as policymakers debate a separate digital-asset topic. Reports say legislator Ko Ju-chun stated that the Executive Yuan and Taiwan’s central bank agreed to explore the idea of adding Bitcoin to strategic reserves. The same reports describe a plan to look at a pilot BTC treasury approach based on seized Bitcoin held by the state.

Ko has said the government plans to draft more Bitcoin-friendly rules within six months. He also described a process for taking inventory of seized BTC that is awaiting auction. The stablecoin project and the Bitcoin proposal are not the same policy, but both show wider attention on crypto-related infrastructure.

Supporters of the Bitcoin idea have pointed to Taiwan’s reserve structure as a reason to study diversification. Reports have cited holdings that include gold and large foreign-exchange reserves, with a heavy share invested in U.S. Treasuries. 

For stablecoins, Taiwan’s decision now is less about hype and more about market function and regulatory control. A bank-led issuance plan suggests a preference for strict oversight and institutional accountability.