Taiwan drafts stablecoin rules with NT$300m bar for non-banks
Why it matters
Taiwan's draft stablecoin rules put banks first but let other firms issue too, with at least NT$300m in capital. Banks and fintechs eyeing Taiwan dollar tokens now have a rulebook to comment on.
The short version
Taiwan's Financial Supervisory Commission published draft stablecoin issuance rules on 3 November. Banks, financial holding companies and bank-backed firms can apply, and non-bank issuers need at least NT$300m (about $9.4m) in capital. Each coin must be fully backed and pegged to the Taiwan dollar or one foreign currency. Comments run for 40 days.
Here's what happened. Taiwan's financial regulator, the FSC, has set out draft rules on who can issue stablecoins, digital tokens meant to hold a steady value, according to TokenPost and Bloomingbit.
Banks, financial holding companies and companies backed by banks can apply, and the FSC can name other eligible firms. A non-bank issuer needs at least NT$300m in paid-in capital, about $9.4m according to Bloomingbit. It must offer shares publicly and do nothing but issue and redeem stablecoins.
Each coin must be pegged one-to-one to the Taiwan dollar or a single foreign currency. Issuers must hold reserves worth at least as much as the coins in circulation, with regular checks by accountants. They also need anti-money-laundering controls and a way to freeze transfers quickly when the authorities ask.
The same day, the FSC set out draft rules for other crypto firms. Trading platforms and custodians, the firms that hold coins for clients, would need NT$100m in capital, TokenPost reported.
What comes next? A 40-day comment period. The rules sit under the Virtual Asset Service Act, which has been signed into law but has no start date yet. The FSC wants the law and its rules to take effect together.
Where this comes from
Written with AI from the sources above and checked against them before publishing. Here's how we work. This is news, not financial advice. Spotted a mistake? Tell us.