The post Taiwan Targets Late-2026 for First Regulated Stablecoin appeared on BitcoinEthereumNews.com. Taiwan aims to launch its first regulated stablecoin in the latter half of 2026. The Virtual Assets Service Act will set rules on full reserves, local custody, and asset separation. Initially, only financial institutions are expected to handle issuance, while the currency peg remains undecided. Taiwan is accelerating its move into regulated digital assets, with officials confirming that the island’s first stablecoin could debut in the second half of 2026.  Financial Supervisory Commission (FSC) Chair Peng Jin-long said this week that a Taiwan-issued stablecoin may enter the market “in the latter half of 2026 at the earliest,” depending on the speed of legislative progress. Legislative Progress Toward 2026 Debut The Virtual Assets Service Act, the core legal foundation for stablecoin oversight, has passed early Cabinet-level reviews and is expected to be submitted to the Legislative Yuan this session. If the process runs smoothly, the bill could pass its third reading next session, after which the FSC would issue detailed regulations. Peng noted that once subordinate rules are announced, a six-month buffer period is required before implementation. Accordingly, this places the earliest possible stablecoin launch in late 2026. Notably, the draft law does not explicitly limit issuers to banks. However, the FSC and Taiwan’s central bank currently want only financial institutions to handle issuance. U.S. Dollar or New Taiwan Dollar? A major unresolved issue is what the stablecoin will be pegged to. Regulators have not yet decided whether Taiwan’s first stablecoin should follow the U.S. dollar or the New Taiwan dollar (NTD). Pegging it to the U.S. dollar would avoid complications arising from Taiwan’s strict rules that prevent the NTD from circulating offshore. But choosing the NTD could challenge long-standing central bank efforts to keep the currency onshore and prevent unofficial offshore pricing. For now, regulators are working on rules requiring… The post Taiwan Targets Late-2026 for First Regulated Stablecoin appeared on BitcoinEthereumNews.com. Taiwan aims to launch its first regulated stablecoin in the latter half of 2026. The Virtual Assets Service Act will set rules on full reserves, local custody, and asset separation. Initially, only financial institutions are expected to handle issuance, while the currency peg remains undecided. Taiwan is accelerating its move into regulated digital assets, with officials confirming that the island’s first stablecoin could debut in the second half of 2026.  Financial Supervisory Commission (FSC) Chair Peng Jin-long said this week that a Taiwan-issued stablecoin may enter the market “in the latter half of 2026 at the earliest,” depending on the speed of legislative progress. Legislative Progress Toward 2026 Debut The Virtual Assets Service Act, the core legal foundation for stablecoin oversight, has passed early Cabinet-level reviews and is expected to be submitted to the Legislative Yuan this session. If the process runs smoothly, the bill could pass its third reading next session, after which the FSC would issue detailed regulations. Peng noted that once subordinate rules are announced, a six-month buffer period is required before implementation. Accordingly, this places the earliest possible stablecoin launch in late 2026. Notably, the draft law does not explicitly limit issuers to banks. However, the FSC and Taiwan’s central bank currently want only financial institutions to handle issuance. U.S. Dollar or New Taiwan Dollar? A major unresolved issue is what the stablecoin will be pegged to. Regulators have not yet decided whether Taiwan’s first stablecoin should follow the U.S. dollar or the New Taiwan dollar (NTD). Pegging it to the U.S. dollar would avoid complications arising from Taiwan’s strict rules that prevent the NTD from circulating offshore. But choosing the NTD could challenge long-standing central bank efforts to keep the currency onshore and prevent unofficial offshore pricing. For now, regulators are working on rules requiring…