Taiwan Set to Launch First Government-Regulated Stablecoin in Late 2026 Under New Digital Asset Law

Taiwan is preparing to introduce its first fully regulated New Taiwan Dollar (NTD) stablecoin by the second half of 2026, marking a major milestone in the country’s digital finance transformation. The launch is dependent on the adoption of a new Virtual Asset Law, which is currently under legislative review and is expected to reshape how cryptocurrencies and digital assets are regulated across the island.

The proposed law aims to establish a comprehensive regulatory system for digital asset platforms, exchanges, custodians, and stablecoin issuers. Once enforced, it will require all virtual asset businesses in Taiwan to register with the financial regulator, comply with capital adequacy rules, and follow strict consumer protection standards. The legislation also introduces direct oversight of stablecoin issuance for the first time, laying the groundwork for a local currency-backed digital asset.

New Virtual Asset Law to Regulate Stablecoin Issuance

Under the upcoming framework, any stablecoin tied to the New Taiwan Dollar must receive official approval before being offered to the public. Issuers will be mandated to hold reserve assets equivalent to the total value of coins in circulation, ensuring stability and reducing financial risk. These reserves must be stored at domestic financial institutions and will be subject to regular third-party audits.

The law will also prohibit trading platforms from listing unapproved stablecoins, effectively restricting the market to compliant digital currencies only. This move is expected to significantly improve investor confidence while reducing systemic risk linked to foreign-issued or unregulated stablecoins currently used in Taiwan.

Why Late 2026 Is the Target for Launch

The bill is projected to complete legal approval during the first half of 2026. Once passed, a transition period will follow to allow financial institutions and technology firms to meet compliance requirements. Licensing procedures, technical audits, and infrastructure readiness are expected to take several months, making late H2 2026 the earliest realistic window for a regulated NTD stablecoin to enter the market.

Regulators are taking a cautious approach due to concerns about money laundering, capital control, and financial stability. By prioritizing regulatory clarity before launch, Taiwan aims to avoid the volatility and failures seen in unregulated stablecoin markets globally.

Banks Likely to Lead Stablecoin Issuance

The first approved NTD stablecoin is widely expected to be issued by a domestic bank or banking consortium rather than a cryptocurrency startup. Financial institutions already have compliance systems, liquidity management experience, and regulatory trust, making banks the most practical candidates for launching a secure national stablecoin.

A regulated digital currency is expected to provide major benefits, including real-time payments, lower cross-border transaction fees, transparent settlement systems, and enhanced support for digital trade and decentralized finance applications. It may also encourage innovation in programmable payments and smart contract integration across the financial ecosystem.

By aligning with international financial standards, Taiwan is positioning itself as a regional leader in safe and compliant digital finance. If plans proceed as scheduled, the country could soon join the growing list of economies operating legally approved stablecoins.

FAQs

When will Taiwan’s first regulated stablecoin be launched?

The expected launch window is the second half of 2026, after the virtual asset law is fully passed and licensing procedures are completed.

What is the new Virtual Asset Law?

It is an upcoming legal framework that will regulate digital assets, exchanges, and stablecoin issuers, establishing requirements for financial security, audits, and consumer protection.

Will stablecoins need approval before being listed?

Yes. Only stablecoins approved by regulators will be permitted to trade on local platforms.

Who will issue the first stablecoin in Taiwan?

While not officially confirmed, domestic banks are expected to lead issuance due to their compliance readiness and financial reliability.

How will users benefit from the regulated stablecoin?

Users will enjoy safer digital transactions, faster payments, lower fees, and higher trust in digital currency systems due to strict regulatory oversight.