Taiwan’s Financial Supervisory Commission (FSC), the island’s financial regulator, is preparing nine supporting regulations for the Virtual Asset Service Act, including detailed stablecoin rules that could be published and implemented as early as the first quarter of 2027. The law, passed by Taiwan’s legislature in its third reading on June 30, establishes licensing requirements for crypto businesses and a framework for stablecoin issuance. It requires FSC approval for exchanges, trading platforms, transfer providers, custodians, underwriters and lending businesses, while companies registered under the previous anti-money laundering regime have a transition period to obtain licenses. Stablecoin issuers will face separate approval from the FSC and Taiwan’s central bank, with requirements for full reserve backing, reserve assets held in trust, audits and disclosures. Financial institutions are evaluating stablecoins for cross-border payments, custody, tokenization, lending, trading and treasury management. Industry executives also see blockchain and programmable payments as potential infrastructure for Taiwan’s semiconductor supply chain, where international transactions face time-zone, banking-hour and settlement constraints. FSC Chairman Peng Jinlong said global debate has shifted from whether virtual assets and stablecoins should be developed to how they should be regulated. Cathay Financial Holdings senior executive vice president Sun Chih-te said adoption will depend on clear rules, coordination across markets and customer experiences that deliver practical benefits. Taiwan is also expanding crypto-transfer safeguards, including proposed Travel Rule requirements for domestic transfers above NT$30,000 and plans to cover transfers involving overseas providers by the end of 2027.