Taiwan: Draft Stablecoin Rules Keep Issuance With Banks, Set NT$300 Million Capital Floor
Taiwan has shown who will be allowed to issue its first locally regulated stablecoins, and the answer is mostly banks. On 3 November the Financial Supervisory Commission (FSC), the island’s financial regulator, published draft issuance rules that keep stablecoins inside the banking system, with a NT$300 million capital floor for non-bank issuers.
Key facts
- The FSC released draft rules on how stablecoin issuers will be licensed and supervised on 3 November 2026, with a 40-day period for public comment.
- Applicants are limited to banks, financial holding companies, companies that banks have invested in, and other institutions the regulator designates.
- Non-bank issuers need paid-in capital of at least NT$300 million (about US$9.4 million) and may do nothing except issue and redeem stablecoins.
- Each coin must be pegged one-to-one to the New Taiwan dollar or a single foreign currency and fully backed by reserve assets.
- The rules will take effect together with the Virtual Asset Service Act, which the Legislative Yuan (Taiwan’s parliament) passed on 30 June 2026; the FSC has pointed to the first quarter of 2027 at the earliest.
What the draft says
A stablecoin is a digital token designed to keep a steady value, usually by tracking a currency such as the US dollar. Taiwan’s new law treats issuing one as a licensed financial activity. Under the Virtual Asset Service Act, an issuer needs both the agreement of the central bank and permission from the FSC, and cannot refuse when a holder asks to redeem tokens at face value.
The draft fills in the detail. Issuers must keep reserves worth at least as much as the coins in circulation, held apart from their own money, and have them checked regularly by auditors. They must verify the identity of customers who buy or redeem coins, run anti-money-laundering controls as a financial institution would, and be able to quickly restrict transfers when the authorities ask. Paying interest or any other return to holders is banned.
Ownership is the most closely watched part. Tech companies are not shut out, but they cannot go it alone. According to Blockhead, a single bank or financial holding company must own more than 25% of any issuer, and banks and financial groups together must hold more than half. Taiwanese outlets have described this as forcing tech firms into joint ventures with lenders. Non-bank issuers must also be publicly listed, according to a summary of the draft.
Why it matters
Taiwan is one of Asia’s richest consumer markets, yet it has had no clear path for a local stablecoin. These rules turn the law passed in June into something banks can plan around. They also put Taiwan in the cautious camp. Like Hong Kong, which runs its own licensing regime for stablecoin issuers, Taipei wants stablecoins under tight supervision rather than as an open field for crypto start-ups.
For banks, the draft is an opening. A bank-led coin could be used for faster business payments, settling trades in tokenised assets, or moving money between wallets around the clock. For fintech and e-commerce firms, the message is that partnering with a bank is the only route in. For users, full reserves, guaranteed redemption at face value and segregated assets are meant to make the tokens safer to hold, though the ban on interest means they will work more like digital cash than savings.
Not everything is settled. The draft does not yet list which foreign currencies may be used, and reports say Taiwan-regulated stablecoins are not yet cleared for cross-border transfers. Stablecoins issued abroad can only be offered in Taiwan if licensed there or approved by the FSC.
What to watch
- Changes to the draft after the 40-day comment period, especially to the bank ownership rules.
- When the Executive Yuan (Taiwan’s cabinet) sets the date the Virtual Asset Service Act comes into force.
- Which banks or bank-tech partnerships apply first, and whether the first coin tracks the New Taiwan dollar or the US dollar.
Related on FinDeskAsia: Hong Kong: Standard Chartered-Backed Anchorpoint to Issue HKDAP Stablecoin on Solana and Taiwan: PXPay Plus Joins Samsung Wallet.
Sources: Blockhead (November 2026), Bloomingbit (November 2026), Zagdim (November 2026), TRM Labs (August 2026).
