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Taiwan's Crypto Milestone: First Stablecoin Launch Set for 2026 Amid New Law

Taiwan is moving forward with plans for its first official stablecoin. According to FSC Chairman Peng Jin-long, the earliest we could see it launch is the second half of 2026. This timeline depends on smoothly passing the new Virtual Assets Service Act, which the Cabinet is reviewing this week. The initial rollout will be cautious, allowing only financial institutions to issue these digital currencies.

Key Points: Taiwan FSC Chair Peng Jin-long Sets 2026 Stablecoin Launch Timeline

  • Taiwan's stablecoin launch hinges on passing the Virtual Assets Service Act in the next legislative session
  • A six-month buffer period is required after FSC announces subordinate regulations for the law
  • The draft bill is modeled after the EU's Markets in Crypto-Assets Regulation (MiCA)
  • Initial issuance will be restricted to financial institutions for risk management purposes
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Taiwan's 1st stablecoin to launch in H2 2026 at earliest: FSC Chair

FSC Chair Peng Jin-long says Taiwan's first stablecoin could launch in H2 2026, pending passage of the new Virtual Assets Service Act and regulatory preparations.

"A high level of consensus. - FSC Chairman Peng Jin-long on Cabinet meetings for the Virtual Assets Service Act"

Taipei, December 3

A Taiwan-issued stablecoin may enter the market in the latter half of 2026 at the earliest based on the current timeline for passing related legislation, Financial Supervisory Commission (FSC) Chairman Peng Jin-long said Wednesday, as Focus Taiwan reported.

At a legislative hearing, Peng said the stablecoin's proposed legal basis, the "Virtual Assets Service Act," should be placed on the agenda of the current legislative session and passed during the next session if the bill progresses smoothly through the Legislative Yuan.

Once the FSC announces subordinate regulations, an additional six-month buffer period will be required before the law takes effect, he said.

The Cabinet is scheduled to review the act this week, following three prior meetings that Peng said produced a "high level of consensus."

A stablecoin is a cryptocurrency designed to have a stable value, often by being pegged to a fiat currency or other asset.

Peng said the draft bill draws on the European Union's Markets in Crypto-Assets Regulation and does not explicitly require stablecoins to be issued by financial institutions.

From a risk-management standpoint, however, the FSC and the central bank have agreed that only financial institutions will be permitted to issue them in the initial stage.

- ANI

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Reader Comments

P
Priya S
The timeline seems quite long – H2 2026 is far away! In India, we need faster adoption of such fintech innovations. UPI was a game-changer because of swift implementation. Crypto regulation needs similar urgency to prevent grey markets.
R
Rohit P
Limiting issuance to financial institutions initially is a smart, risk-averse move. We've seen too many crypto scams globally. India should also consider a phased approach when we eventually launch a digital rupee or allow private stablecoins. Safety first!
S
Sarah B
As someone working in fintech, the reference to EU's MiCA regulation is key. Global standards are emerging. India's position will be crucial given our tech talent and market size. We shouldn't get left behind in shaping these rules.
V
Vikram M
With all due respect to the report, the focus should be on the technology and economic impact, not the politics of where it's from. A stablecoin pegged to a strong currency could facilitate trade for Indian exporters if interoperable. That's the real discussion.
K
Kavya N
The six-month buffer period after regulations are announced is a good practice. Gives businesses time to adapt. Hope Indian regulators provide similar clear timelines and consultation periods, not sudden bans or changes in policy. Clarity helps everyone. 🙏

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