Taiwan's Virtual Asset Special Act 'Incorporates Stable Coin Regulations'! Pang Jinlong: FSC, Central Bank jointly manage

On January 22, the Financial Supervisory Commission of Taiwan announced the latest legislative progress on virtual asset management. It is expected that the special law for virtual assets will be released in June this year, and it will be announced that the regulation of stablecoins will be included in the special law. The Chairman of the Financial Supervisory Commission, Huang Tien-Mu, pointed out that the stablecoin market will be jointly supervised by the Financial Supervisory Commission and the Central Bank.

Peng Jinlong stated that the Financial Supervisory Commission has reached a consensus with the Central Bank on the regulation of Stable Coins, and they will jointly supervise this market in the future. As for the Central Bank's Central Bank Digital Currency (CBDC), it still falls within the jurisdiction of the Central Bank.

"Stable Coin" regulation, who is responsible? FSC and Central Bank have different perspectives.

Peng Jinlong mentioned that in terms of positioning, Stable Coin is the 'entry' for investors when trading virtual assets, mainly serving as a bridge tool between legal tender coins and virtual assets, so the FSC will actively deal with it in the special law for virtual assets.

Banking Bureau Director Zhuang Xiu-yuan stated that the most common stablecoins on the market are USDT, USDC, and other USD stablecoins, but they have not been approved by the regulatory authorities. Currently, countries that regulate stablecoins require approval from regulatory authorities for their issuance. There are clear regulations on how to allocate reserves, reserve levels, etc.

Chuang Hsiu-yuan added that Taiwan is still in the legislative stage and the Financial Supervisory Commission will consult the Central Bank on the direction of the Stable Coin plan in the future.

Regarding the PTT Digital Currency Coin version moderator DarkerDuck's recent post, he pointed out that US President Donald Trump issued the meme coin $TRUMP, and 'on the public platform X that Taiwanese people can see, he openly sells his Trump coin', 'Trump, as a personal coin merchant, sells coins to Taiwanese people without a Taiwan VASP license', which may violate relevant Taiwanese regulations. Chang Chen-shan, director of the Securities and Futures Bureau of the Financial Supervisory Commission, stated that Trump's issuance of meme coins is a personal act and not a coin issued for others. There is no marketing advertisement in Taiwan, so it does not fall under the regulations in Taiwan.

Regarding the FSC's decision last September to allow professional investors to delegate investment in overseas-listed Bitcoin spot ETFs, Pang Ching-lung revealed that the FSC will observe for six months and then request the SFB to review the implementation before deciding whether to further open it to retail investors.

Professional investors take the lead! Taiwan FSC: Open to 'cross-trading' to buy Bitcoin, Ethereum spot ETFs

The Financial Supervisory Commission stated that the current plan for the draft special law on virtual assets includes: general provisions, virtual asset service providers, VASP Association, stablecoin issuance and management, administration and supervision, penalties and supplementary provisions, with a focus on the supervision of VASP including: organizational structure, capital requirements, personnel qualifications, financial reporting, and customer protection.

The FSC is expected to invite experts, scholars, VASP associations, and representatives of relevant units to hold a public hearing in February this year; conduct regulatory advance notice in March, fully collect external suggestions and make adjustments; and submit the special law proposal to the Executive Yuan before the end of June.

〈Taiwan's Virtual Asset Special Law 'Incorporating Stable Coin Regulations'! Peng Jinlong: Jointly Managed by the FSC and the Central Bank〉. This article was first published in 'Blockchainer'.