According to a report in the Economic Daily News, the Financial Supervisory Commission (FSC) of Taiwan plans to propose a draft law on Virtual Asset Service Providers (VASPs) in June 2025, which will allow banks to issue stablecoins for the first time.
FSC Chairman Teng Chin-lung stated that stablecoins will serve as a bridge between fiat currency and virtual currency, providing investors with a trading entry point. All stablecoins issued in Taiwan will require approval from the FSC, including requirements for issuing qualifications and reserve funds. This policy will be coordinated with the central bank to clarify the distinction from CBDC and evaluate the application of stablecoins in the real economy.
