As the sector continues to gain global momentum, Taiwanese authorities have announced that a locally issued stablecoin could be launched next year, pending the imminent approval of the country’s regulatory crypto framework and related legislation.

First Local Stablecoin To Debut Next Year

On Wednesday, Taiwan’s Financial Supervisory Commission (FSC) Chairman Peng Jin-long revealed that the island’s first regulated stablecoin could debut in the latter half of 2026, local news outlet Focus Taiwan reported.

The FSC chair affirmed that the Virtual Assets Service Act (VASA), which incorporates stablecoin regulation, could be passed during its third hearing in the next legislative session, scheduled for this week, after clearing initial reviews with a “high level of consensus.”

After the framework’s approval, stablecoin-centered regulations would be developed within six months, setting the launch of a locally issued token pegged to the New Taiwan Dollar (NTD) or the US Dollar (USD) to the second half of the year.

The VASA supports the efforts by Taiwanese authorities to establish a comprehensive crypto framework that promotes industry growth and safeguards investors. Last year, the FSC announced an overhaul of the Anti-Money Laundering (AML) framework to include crypto businesses, introducing stricter AML guidelines for Virtual Asset Service Providers (VASPs) and requiring all crypto firms to complete the AML registration by September 2025.

In January, Peng stated that investors could have a “convenient” entrance to crypto assets in the future through stablecoins, which could serve as a bridge between the country’s legal tender and virtual currency.

In March, the FSC published the finalized draft of its landmark crypto legislation, which the VASA’s draft proposed authorizing banks to issue stablecoins pegged to the New Taiwan Dollar or the US Dollar.

Meanwhile, Premier Cho Jung-tai and Central Bank Governor Yang Chin-long recently expressed support for a formal Bitcoin (BTC) policy, pledging to study the flagship cryptocurrency as a strategic reserve asset, accelerate pro-BTC rulemaking, and pilot treasury exposure through government-seized assets.

Taiwan Sets Financial Institutions’ Role

At the legislative hearing, the FSC’s chair highlighted that the bill’s draft draws from the European Union (EU)’s Markets in Crypto-Assets Regulation (MiCA). He explained that the Virtual Assets Service Act doesn’t require stablecoins to be issued exclusively by financial institutions, which has been a divisive topic in other jurisdictions.

As reported by Bitcoinist, South Korea’s long-awaited stablecoin legislation could be delayed until next year as the Korean Financial Services Commission clashes with the Bank of Korea (BOK) over the role of banks in the sector.

A local news media outlet recently noted that the BOK and regulators agree that financial institutions must be involved in the issuance of won-pegged tokens, but differ on the extent of their role.

The central bank is pushing for a consortium of banks owning at least 51% of any stablecoin issuer seeking regulatory approval. Meanwhile, regulators are concerned that giving a majority stake to banks could reduce participation from tech companies and limit the market’s innovation. Earlier this week, authorities set December 10 as the deadline for the government to deliver a draft bill.

Unlike South Korea’s financial authorities, Focus Taiwan reported that the regulator and the central bank have agreed that only financial institutions will be allowed to issue stablecoins in the initial stage to reduce risk management, suggesting that companies could join at a later stage of the project.

Taiwan could roll out its first domestically issued stablecoin by the second half of 2026 as lawmakers move forward with legislation to regulate digital assets, though key design choices, including which currency the token will track, remain unresolved.

According to local media, Financial Supervisory Commission chair Peng Jin-long told lawmakers this week that the draft Virtual Assets Service Act has cleared initial cabinet reviews and could pass its third reading in the next legislative session.

Rules specific to stablecoins would follow within six months of approval, pointing to a possible late-2026 release at the earliest.

Taiwan to Let Banks Lead Stablecoin Rollout as Regulators Tighten Controls

The draft law does not confine issuance to banks, but Peng said financial institutions will take the lead in the early stages, reflecting a cautious approach as regulators open the door to domestic digital tokens.

The FSC is coordinating policy development with the Central Bank of the Republic of China (Taiwan), which has long enforced strict controls to keep the Taiwan dollar from circulating overseas.

That constraint is shaping the stablecoin debate. A token pegged to the Taiwan dollar would collide with existing foreign-exchange rules, as the currency is not allowed to circulate offshore.

A US dollar-backed stablecoin, by contrast, would avoid the thorniest regulatory issues and align more closely with global settlement use cases tied to cross-border payments.

Stablecoins, by design, move value across borders with speed and low cost, features that could undercut decades of policy aimed at keeping the local currency onshore and preventing unofficial offshore pricing.

Regulators are now drafting guardrails requiring full reserve backing, strict segregation of client assets and domestic custody to limit risk at launch.

What remains undecided is the anchor currency itself. Peng said the final choice will depend on market demand, with no commitment yet to either the US dollar or the Taiwan dollar.

Taiwan Weighs Adding Bitcoin to National Reserves

As reported, Taiwan’s government is moving closer to integrating Bitcoin into its national reserve strategy, with the island’s Executive Yuan and Central Bank agreeing to evaluate Bitcoin as a potential strategic asset and explore pilot holdings using seized BTC currently awaiting auction.

In August, Taiwanese prosecutors indicted 14 individuals in the nation’s largest crypto money-laundering case, exposing a NT$2.3 billion ($75 million) fraud that deceived over 1,500 victims through fake crypto exchange franchises.

The operation, led by Shi Qiren, ran more than 40 storefronts under names like “CoinW” and “BiXiang Technology,” posing as licensed exchanges while secretly funneling investor funds into overseas crypto accounts.

Authorities seized cash, crypto, and luxury assets worth over NT$100 million, while Shi faces up to 25 years in prison for fraud, money laundering, and organized crime.

The group’s success hinged on exploiting regulatory blind spots in Taiwan’s crypto oversight. By claiming false approval from the Financial Supervisory Commission, the network built investor trust, collected hefty franchise fees, and used “deposit machines” to mimic legitimate exchange operations.

Prosecutors described the scheme as “systematic fraud” that leveraged Taiwan’s crypto curiosity and weak enforcement.

The post Taiwan Targets Late-2026 Launch for First Domestic Stablecoin appeared first on Cryptonews.

OPINION — Last week’s Fourth Plenum of the Chinese Communist Party witnessed a purge of China’s senior military leaders, culminating in over two years of the removal of senior military officials once loyal to President Xi Jinping.

The last two defense ministers – Wei Feng he and Li Shangfu – were removed in October 2023 and June 2024. And now, He Wei Dong, Vice Chairman of the Central Military Commission (CMC) was expelled from the Party and Military for “serious violations of Party discipline.” Admiral Miao Hua, Director of the CMC’s Political Work Department (responsible for the political/ideological work in the military) was removed from the CMC in June 2025 and later officially expelled.

The list goes on and on: Lin Xiangyang, Former Commander of the Eastern Theatre Command; Wang Houbin, Former Commander of the PLA Rocket Force; Wang Chunning, Former Commander of the People’s Armed Police. These are just three of eight or nine senior military officers purged in October 2025.

Purges of senior officials are not new to China. On July 1, 1989, Zhao Ziyang was removed as the Party’s General Secretary -- and Vice Chairman of the CMC -- for supporting the students during the June 1989 Tiananmen Square demonstrations, and on July 1, 1987, Hu Yaobang was removed as the Party’s General Secretary for supporting the students who were demanding more democracy. Deng Xiaoping accused Mr. Hu, a former protégé of his, of “bourgeoise liberalization.”

And in 1971, Lin Biao, Vice Chairman of the Chinese Communist Party and his wife, Ye Qun, planned the assassination of Chairman Mao Zedong, to replace Mao as the supreme leader. The plot was discovered and Lin Biao died in an airplane crash as he was fleeing for his life.

Many of the recently purged generals, including He Weidong and Admiral Miao Hua, worked in the 31st Group Army stationed in Fujian Province during the 1970s and 80s. This region is the front line for any potential military operation against Taiwan. In fact, He Weidong later served as commander of the Eastern Theatre Command from 2019 to 2022, the unit responsible for operations concerning Taiwan.

General He was a member of the Communist Party’s Politburo and Vice Chairman of the CMC, the third highest-ranking military official in China. His professional prominence was also due to his association with Xi Jinping, but in October 2025, General He and eight others senior military officers were expelled from the Communist Party and the military. They in fact were referred for criminal prosecution on charges of corruption and “serious violations of discipline and law.”

General He and the other purged generals all had connections to Fujian and the former Eastern Theatre Command commander Lin Xiangyang and Navy Admiral Miao Hua. It would be fair to assume that these senior military officers disagreed with some of Mr. Xi’s policies toward Taiwan.

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Given the importance of Taiwan for Mr. Xi and the Communist Party, a disagreement with seniors in the military over Taiwan could develop into an issue that affects the inner workings of the Party. Mr. Xi has consistently refused to renounce the use of force to bring Taiwan under its control and continues to conduct military exercises near Taiwan. Mr. Xi maintains, however, that “peaceful reunification” is preferable but reserves the option of using force, particularly in response to “external forces” or “separatist activities” in Taiwan.

Hopefully, Mr. Xi will pursue a policy of peaceful reunification with Taiwan and immediately halt military exercises and related activities to intimidate Taiwan.

This column by Cipher Brief Expert Ambassador Joseph DeTrani was first published in The Washington Times

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