Taiwan Virtual Asset Service Act and stablecoin issuance rules take effect

Taiwan's Virtual Asset Service Act and the accompanying stablecoin issuance rules are expected to take effect in the first quarter of 2027 at the earliest. The date is tentative, and no specific coins are named in the sources.

What is happening

Taiwan's Financial Supervisory Commission (FSC) has released draft rules, one of three sets of regulations written under the Virtual Asset Service Act, that set out how stablecoins will be issued and managed on the island. The Legislative Yuan passed the act on June 30, creating Taiwan's first dedicated crypto statute and making the FSC the sole regulator. The draft rules are due to take effect on the same date as the act itself.

Under the draft, only banks, companies invested in by banks or financial holding groups, and other institutions designated by the regulator could apply to issue stablecoins. A two-tier ownership test would apply: a single bank or financial holding company would need to own more than 25% of the issuing entity, and banks and financial holding companies together would need to own more than 50%. An FSC Banking Bureau official said non-financial companies, such as technology firms, would face two hurdles, and that one bank or financial holding company would still need to hold more than 25%.

The act also requires that a stablecoin be pegged solely to a fiat currency and backed by full one-to-one reserves, segregated from company funds and held in trust. Issuance needs both central bank agreement and FSC permission, and paying interest or yield is prohibited. Offshore providers must set up a local branch and obtain FSC approval, and USDT is reclassified as a commodity.

Why it matters

The rules turn the "only banks may issue" principle into a concrete ownership test. Joint ventures that include non-bank partners could be possible if the bank thresholds are met, but a technology company would have no direct route to issuance on its own. The structure resembles Hong Kong's, where the first stablecoin licences went to bank-linked issuers, and points to a small group of regulated issuers working with banks.

For holders and traders, the practical questions are which stablecoins will be available in Taiwan, who will issue them and how foreign tokens will be treated. The reports do not say when exactly the rules will apply beyond tying them to the act's start date, how many banks have applied to issue, which currency stablecoins would be pegged to, or how the central bank will use its consent power.

Key details

• Date: Q1 2027 at the earliest (quarter precision, tentative; not confirmed)
• Project: Taiwan Financial Supervisory Commission
• Coins: none specified (USDT is mentioned as being reclassified as a commodity)
• Category: Regulatory Deadline
• Status: Tentative
• Source: Blockhead, "Taiwan's draft stablecoin rules require a bank to own more than 25% of any issuer" (https://www.blockhead.co/2026/11/06/taiwans-draft-stablecoin-rules-require-a-bank-to-own-more-than-25-of-any-issuer/)