Taiwan is moving closer to launching its first government-regulated stablecoin, with officials indicating that a rollout could begin in the second half of 2026. The development follows progress on new digital asset legislation designed to bring clarity and oversight to the country’s fast-growing crypto sector.

Stablecoin Launch Likely in Late 2026

Financial Supervisory Commission Chair Peng Jin-lon stated that, based on current legislative timelines, Taiwan could introduce a locally issued stablecoin in late 2026. The move depends on the approval of the Virtual Assets Service Act in the next legislative session. Once passed, the law would come with a six-month preparatory period before taking effect.

This framework would pave the way for a Taiwan dollar or US dollar-pegged stablecoin backed by regulated financial entities. At present, Taiwan has no officially sanctioned stablecoin, despite several private companies operating in the digital asset space.

New Law Draws from Europe’s MiCA

Peng explained that the draft legislation is inspired by Europe’s Markets in Crypto-Assets rules. The Taiwanese approach seeks to establish strict oversight in the early stage. Although the long-term plan includes allowing non-financial companies to issue stablecoins, initial permissions will be limited to institutions overseen by the central bank and the FSC.

The regulatory push comes after Taiwan tightened its Anti-Money Laundering standards in 2023. The enforcement followed investigations into alleged violations involving crypto exchanges MaiCoin and BitoPro. Despite these efforts, no regulated stablecoin has been launched to date.

Country Examines Seized Bitcoin Holdings

Alongside progress on stablecoin law, Taiwanese authorities are reviewing the total amount of Bitcoin seized in criminal cases. This review has fuelled speculation that the government may be preparing a formal crypto reserve strategy.

Ju-Chun, a member of Taiwan’s legislature, urged the government earlier this year to add Bitcoin to the country’s reserves as protection against global economic uncertainty. Taiwan currently holds assets such as gold and US Treasury bonds. It does not include cryptocurrencies in its national reserves.

Growing Interest in Strategic Crypto Reserves

Global interest in strategic digital asset reserves has expanded in recent years. Several governments, including the US, have adopted policies to support the holding or management of Bitcoin and other crypto assets. Taiwan’s review of confiscated Bitcoin is being interpreted by some analysts as an early step toward considering similar measures.

Although no official plans have been confirmed, the review highlights a shift in the country’s approach to digital assets, moving from enforcement and oversight toward long-term strategic evaluation.

A Pivotal Moment for Taiwan’s Digital Asset Future

Taiwan’s exploration of both stablecoin creation and potential Bitcoin reserves signals an important transformation in its financial policy. The forthcoming legislation is expected to create a transparent environment for issuers, protect users, and encourage innovation.

If the Virtual Assets Service Act passes on schedule, Taiwan could position itself as one of Asia’s more forward-looking jurisdictions in the regulated crypto space. The anticipated 2026 stablecoin launch would mark a significant milestone in the country’s digital finance journey.