TAIWAN'S FIRST REGULATED STABLECOIN DEBUTING NEXT YEAR

Summary from the TLDR Crypto newsletter

Taiwan's Financial Supervisory Commission confirmed the island's first regulated stablecoin could launch late 2026 after the Virtual Assets Service Act cleared cabinet reviews with stablecoin-specific regulations following within six months, though the critical decision between USD or Taiwan dollar backing remains unresolved. A USD-pegged token bypasses strict currency export controls, keeping the Taiwan dollar onshore, while a TWD stablecoin enabling cross-border settlement would directly challenge decades of central bank policy preventing unofficial offshore pricing. Financial institutions will lead initial issuance under rules requiring full reserve backing, strict asset segregation, and domestic custody requirements.