Stablecoin Launch Timeline

Taiwan could launch its first stablecoin as early as the second half of 2026, as lawmakers advance new digital asset regulations. Financial Supervisory Commission Chair Peng Jin-lon recently outlined the timeline for the country's entry into the growing stablecoin market.

Based on the timeline for passing related legislation, a Taiwan-issued stablecoin pegged to either the country's dollar or the U.S. dollar could enter the market in the second half of 2026, Peng stated Wednesday. This projection assumes the Virtual Assets Service Act passes in the country's next legislative session and accounts for a six-month buffer period for the law to take effect.

Regulatory Framework and Issuance

The draft legislation was derived from Europe's Markets in Crypto-Assets framework and would eventually allow non-financial institutions to issue stablecoins, according to Peng. Initially, however, Taiwan's central bank and the FSC would restrict issuance to regulated entities before expanding access to a broader range of market participants.

Last year, Taiwan's policymakers began enforcing Anti-Money Laundering regulations in response to alleged violations by crypto companies MaiCoin and BitoPro. As of December, regulated entities in the country have yet to launch a stablecoin pegged to either the U.S. dollar or the Taiwan dollar, despite growing interest from the financial sector.

Assessing Potential Bitcoin Reserves

Taiwan's policymakers are also reportedly assessing the total amount of Bitcoin confiscated by authorities, signaling the nation could be preparing to launch its own strategic crypto stockpile. This move follows similar initiatives by other governments exploring how to manage seized digital assets.

Taiwanese lawmaker Ju-Chun called on the government to add Bitcoin to its national reserves in May as a hedge against economic uncertainty. The country's reserves currently include U.S. Treasury bonds and gold but no cryptocurrencies, leaving Taiwan behind other nations that have adopted policies promoting Bitcoin and crypto reserves.

Broader Digital Asset Strategy

The push for stablecoin regulations and potential Bitcoin reserves reflects Taiwan's broader effort to establish a clear regulatory framework for digital assets while balancing innovation with financial stability concerns. Other countries, including the U.S., have adopted policies that promote Bitcoin reserves and provide clearer pathways for stablecoin issuance.

The legislation would position Taiwan among a growing number of Asian jurisdictions establishing comprehensive crypto regulations. Japan has already approved multiple stablecoin pilots, while Singapore and Hong Kong have implemented licensing frameworks for digital asset service providers, creating regional competition for crypto businesses seeking regulatory clarity.