Taiwan’s Financial Supervisory Commission has published draft rules that would keep stablecoin issuance closely tied to the banking system. Under the proposal, only banks, companies backed by banks or financial holding groups, and other designated institutions would be allowed to issue stablecoins in the local market.
The draft sets out a specific ownership framework for issuers and forms part of a broader rulemaking package under the Virtual Asset Service Act. That law, passed by Taiwan’s Legislative Yuan on June 30, created the island’s first dedicated crypto statute and established the basic conditions for domestic stablecoin issuance.
A two-layer bank ownership requirement
The FSC proposal introduces a two-part ownership test for any stablecoin issuer. A single bank or financial holding company would need to own more than 25% of the issuing entity, while banks and financial holding companies combined would need to control more than 50%.
That structure narrows the route for non-financial businesses that may want to enter the market. A technology company or other corporate participant could be involved through a bank-backed entity or joint venture, but it would still need to fit within the banking ownership thresholds, including the requirement that one bank or financial holding company hold more than a quarter of the issuer.
How the draft builds on the new law
The Virtual Asset Service Act already limited domestic stablecoin issuance in principle by stating that only banks may issue such tokens. It also requires a stablecoin to be pegged only to a fiat currency, backed by full one-to-one reserves, and structured so those reserves are kept separate from company funds and placed in trust.
Issuers would also need both the central bank’s agreement and FSC permission before launching a token. The law further bars the payment of interest or yield, reinforcing a conservative model for stablecoin products in Taiwan.
The new draft appears to translate the law’s broad “only banks” requirement into a more detailed ownership and control test. It also explicitly addresses bank-invested companies, creating a framework that could accommodate bank-linked ventures rather than limiting issuance solely to traditional banks acting alone.
Separate treatment for offshore stablecoins
The article indicates that Taiwan is taking a different approach to foreign-issued stablecoins. Offshore providers would need to establish a local branch and obtain FSC approval if they want access to the market under the planned system.
The same reporting also notes that USDT is being reclassified as a commodity. The source does not provide further detail on how that classification would affect market access or use cases under the new regime.
What remains unclear before implementation
The FSC said it will publish a general explanation and an article-by-article comparison table on its website. Those materials may clarify whether the proposed 25% and 50% ownership thresholds are expected to remain unchanged or could still be revised during consultation.
The draft rules are set to take effect on the same date as the Virtual Asset Service Act, but the reporting does not give a firm implementation date beyond that link, with early 2027 described only as a likely timeframe. It also remains unclear how many banks may seek issuance approval, which fiat currencies future tokens could be pegged to, and how the central bank will apply its consent power in practice.
Taken together, the proposal points to a tightly supervised issuance model centered on regulated financial institutions. If adopted in its current form, the next confirmed step is the release of the FSC’s explanatory documents, followed by implementation alongside the new law’s start date.
Source: www.blockhead.co