Taiwan Unveils Stablecoin Issuance Rules, Moves to Allow Nonbanks to Issue

Taiwan’s financial authorities have unveiled detailed rules for stablecoin issuance, centered on allowing nonbank businesses to issue the tokens while imposing minimum capital and reserve-asset requirements.

According to ABMedia on November 3, Taiwan’s Financial Supervisory Commission published a draft of the Regulations Governing Permission and Administration of Stablecoin Issuance.

Under the draft, eligible applicants for a stablecoin issuance license include banks, financial holding companies, companies invested in by banks, and other entities separately designated by financial regulators. Nonbank businesses must secure at least NT$300 million, or about $9.4 million, in capital and may engage exclusively in stablecoin issuance and redemption.

Issuable stablecoins would be limited to those pegged one-to-one to the Taiwan dollar or a single foreign currency. Issuers must hold reserve assets equal to or greater than the amount of stablecoins in circulation and undergo regular audits.

Issuers must also establish internal-control and information-security systems and comply with anti-money laundering obligations. They must also have a system in place to quickly restrict the transfer or disposal of stablecoins if requested by financial authorities.

Taiwan’s financial authorities plan to gather feedback on the draft for 40 days before finalizing the rules in line with the implementation schedule of the related law.