Taiwan Empowers Banks to Issue Stablecoins with New Legislation – BitRss

The Financial Supervisory Commission (FSC) of Taiwan, an independent authority regulating the financial markets, is set to propose a special bill that will allow banks to issue stablecoins. This legislation aims to facilitate the introduction of stablecoins, which are cryptocurrencies designed to maintain a stable value by being pegged to commodities or currencies.

Stablecoin Legislation

According to recent reports, the FSC is expected to present a bill concerning virtual asset service providers (VASP) in June. The proposed bill will grant banks the authority to issue stablecoins, aiming to keep their value stable based on specific commodities or currencies.

Bank Director Zhuang Yuyuan pointed out that stablecoins like USDC ($1.00), linked to the US Dollar, and Tether (USDT ($1.00)) have not yet received approval from authorities. Once the law takes effect, the FSC will need to approve all stablecoins issued in Taiwan, along with the institutions that issue them and their reserve allocations.

The Role of Banks and Future Plans

FSC Chairman Peng Jinlong stated that banks will co-manage stablecoins alongside the central bank. He also announced plans for the FSC to test crypto custody services with local banks in the first qu…