Taiwan’s Financial Supervisory Commission on the 3rd unveiled draft Regulations Governing the Licensing and Management of Stablecoin Issuers, specifying that stablecoin issuers are limited to banks, financial holding companies, bank-invested subsidiaries, and other institutions announced by the commission as eligible to apply for a license. Non-bank entities wishing to enter stablecoin issuance may only form joint ventures with financial institutions, with financial holding companies and banks collectively holding more than 50% — effectively declaring that pure technology firms cannot independently issue stablecoins.
The draft was released alongside the remaining eight authorized sub-regulations under the Virtual Asset Service Act, with the Financial Supervisory Commission planning to implement the parent act and sub-regulations together in the first quarter of 2027. Wang Yun-chung, deputy director-general of the Banking Bureau, explained that the requirement for financial institutions to hold controlling stakes stems from the need to identify a controlling shareholder accountable for major matters such as future capital increases, regulatory compliance, and policy coordination. If a financial holding company or bank holds more than 25% of an issuing institution, it must also prepare consolidated financial statements.
The equity structure is designed as follows: multiple financial institutions may jointly invest in the same stablecoin issuer, but financial holding companies and banks must collectively hold more than 50%, with the remaining equity held by non-bank entities. Within that financial stake exceeding 50%, a single financial holding company or bank must hold at least 25%. In other words, while technology firms have room to participate, they cannot be the largest contributor of capital nor obtain a controlling position.
On capital thresholds, non-bank issuers face a minimum paid-in capital of NT$300 million (approximately $9.1 million), must conduct a public offering of shares, and must exclusively engage in stablecoin issuance and redemption. Permissible currencies are limited to stablecoins pegged one-to-one to the Taiwan dollar or a single foreign currency; however, referencing restrictions under the Foreign Exchange Regulation Act and the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area, stablecoins pegged to the renminbi or Hong Kong dollar are prohibited entirely.
Risk control is another focus of the draft. Before accepting transactions, issuers must verify the identity of subscribers and redeemers; the total value of reserve assets for each class of stablecoin, measured at fair value, must not fall below the total outstanding balance, and periodic audits by certified public accountants are required. Issuers must also establish internal controls, audit systems, business continuity policies, and information security management systems, and report financial and business data to the Financial Supervisory Commission and the Central Bank of Taiwan. If judicial police or other competent authorities lawfully require restrictions on the transfer or disposal of stablecoins, issuers must have the technology and mechanisms to respond promptly.
The Securities and Futures Bureau on the same day published eight sub-regulations governing Virtual Asset Service Providers (VASPs). Deputy Director-General Huang Chung-hao stated that the framework covers market access, personnel management, internal controls and auditing, financial reporting, industry association self-regulation, and abnormal transaction management, with capital and guarantee deposit requirements set across three tiers based on business risk.
| Risk Level | Business Category | Minimum Paid-in Capital | Fixed Operating Guarantee Deposit |
|---|---|---|---|
| High Risk | Lenders | NT$200 million (approximately $6.1 million) | NT$50 million (approximately $1.5 million) |
| Medium Risk | Trading platform operators, custodians | NT$100 million (approximately $3.0 million) | NT$30 million (approximately $910,000) |
| General Risk | Exchangers, transferors, underwriters | NT$50 million (approximately $1.5 million) | NT$10 million (approximately $300,000) |
Note: When operators engage in multiple businesses, capital and guarantee deposit requirements are calculated cumulatively; if operating all businesses, the minimum paid-in capital must reach NT$500 million (approximately $15.2 million) and the fixed operating guarantee deposit must reach NT$130 million (approximately $4.0 million).
Custodians face an additional dynamic adjustment mechanism: at the end of June and December each year, they must set aside an additional variable operating guarantee deposit of 2.5% of the balance of client assets under custody, after deducting safe items such as assets entrusted to financial institutions for custody. Lenders may not apply for a license independently and must first have at least one year of experience operating as a trading platform operator, or two years operating as an exchanger and custodian.
There are also clear boundaries on how banks may enter the market. Initially, banks will be permitted to engage in four business categories — exchangers, transferors, custodians, and underwriters — with exchange and transfer services limited to corporate clients only. Trading platform operation and lending will not be opened to banks for the time being, with adjustments to be considered later based on practical developments and use cases for Taiwan dollar stablecoins.
On personnel and financial disclosure, business personnel must pass a 24-hour professional training course and obtain a completion certificate, and must undergo continuing education within six months of joining and every two years thereafter. Operators must file audited annual reports within three months after the fiscal year ends, and reviewed semi-annual reports within two months after each half-year ends.
The draft also brings stablecoin issuers within the scope of financial institutions under Article 5 of the Money Laundering Control Act, subjecting them to the full anti-money laundering framework, and amends related regulations to allow dedicated anti-money laundering and counter-terrorism financing units to concurrently handle fraud prevention operations.
The Financial Supervisory Commission noted that the draft has a 40-day comment period, during which the public may submit opinions via the “Draft Announcements” section of the regulatory inquiry system starting the day after publication. After collecting feedback, the regulations will be issued and take effect in line with the implementation date of the Virtual Asset Service Act. Once the new law takes effect, operators will have a 12-month application transition period, during which they must submit applications and obtain licenses within 9 to 12 months, with an overall buffer of up to two years.
For the industry, this design effectively consolidates stablecoin issuance rights within the financial system. In the past, some technology firms expressed interest in issuing their own stablecoins to accelerate cross-border remittances; now, unless they abandon their controlling ambitions, they must become capital contributors in alliances with financial holding companies and banks. Market observers believe this will push the technology and financial sectors from competition toward joint ventures, and make the capital structure, compliance costs, and capital-raising capacity of stablecoin issuers substantive thresholds for obtaining a license.