- Taiwan will allow banks to issue stablecoins like USDT and USDC by June 2025 with FSC licensing.
- New AML regulations for virtual asset service providers take effect in January 2025, requiring strict compliance and registration.
- The FSC will enhance the crypto market by introducing virtual asset trading registrations, tokenizing real-world assets, and considering bitcoin ETFs.
Stablecoin Issuance by Taiwan Banks
Taiwanese Virtual Assets Law going to be placed into Congress by June of 2025. This legislation will enable, for the very first time ever, Taiwanese Banks. Which is to issue a product called stable coins. Stable-coins are essentially cryptocurrencies that purport to operate at a static value, while most of those are pegged to the USD. All this can be done so long as any stablecoin-issuing undertaking is licensed before issuance by FSC. Stablecoins like USDT and USDC are used in Taiwan but have not yet been approved.
Another new AML regulation implemented by Taiwan is the one in January 2025. Virtual Asset Service Providers need to register and comply with the tighter regulations. If they violate the regulations, severe penalties or imprisonment can be imposed. The goal is to bring the crypto closer to the financial world in general. VASPs will also be required to strengthen security in a way that customer assets are safeguarded, and their services are brought into conformity with the law.
FSC Initiatives to Strengthen Crypto Market
The FSC will introduce a new registration for trading virtual assets and de-couple the regulation of virtual assets from the Anti-Money Laundering Act. They hope to present the bill in June 2025, after consulting with the public on the draft bill. The FSC is currently collaborating with six financial institutions on the tokenization project for real-world assets, which will have great market impact.
According to the FSC, it had left the door ajar previously, as it welcomed institutional investors who were buying bitcoin exchange-traded funds. And it expects to review whether those should be available for public purchase sometime later this year.
Taiwan will provide a sound and safe ground for all businesses and investors in the crypto sector. The new rule and legislation will supplement Taiwan’s position in the global crypto trading world without undermining the right regulations of finance. This means VASPs will have to abide by new requirements to avoid penalties and ensure trust in the system.
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