The independent institution that regulates Taiwan’s financial markets, the Finance Supervisory Commission (FSC) plans to offer a special draft law that will allow banks to export stablecoin. This bill is expected to launch stablecoins, which are value of fixed crypto assets of banks.
Stablecoin law
According to recent reports, the FSC is expected to submit a bill on virtual asset service providers (VASP) in June. The bill will give banks the authority to export crypto assets that aim to keep their value constant by being connected to a commodity or currency.
Bank Director Zhuang Yuyuan said that stablecoins such as USDC and TETHER (USDT) connected to the US dollar circulating in the market are not approved by the authorities. After the law enters into force, FSC will have to approve all stablecoins issued in Taiwan, their exporting institutions and reserve allocation.
The role of banks and future plans
FSC President Peng Jinlong said that the banks will manage stablecoins together with the Central Bank of the banks. He also announced that FSC will try crypto storage services with local banks in the first quarter of 2025.
“Banks will manage Stablecoins with the Central Bank.” -Peng Jinlong.
Last year, the regulatory institution forced all crypto -based companies to register until September, otherwise they would face heavy penalties. Now the organization allows professional investors to invest in foreign crypto stock market investment funds (ETF).
These developments are considered as one of the important steps Taiwan has taken to make crypto money markets more regular and transparent. With the adoption of the new bill, significant changes in the financial ecosystem in the country will be possible.
These steps of Taiwan are remarkable in terms of spreading crypto currency and supporting financial innovation. With the implementation of the draft law, it is eagerly awaited how the processes related to banks export stablecoin will be shaped.
Finally, Taiwan’s financial regulations and crypto monetary policies may also be an example for other countries in the region. Successful implementation of this bill can strengthen Taiwan’s position in the fintech field.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
