The independent government agency that regulates Taiwan’s financial markets will reportedly propose a special law that will enable banks to issue stablecoins.
The United Daily News reports that the Taiwanese Financial Supervisory Commission (FSC) intends to submit the draft legislation on virtual asset service providers (VASPs) in June.
The bill contains a provision that gives banks the authority to publish stable coins: crypto-assets that are designed to maintain a stable value by being linked to a raw material or currency, or regulated by an algorithm.
Bank director Zhuang Yuyuan says that the stablecoins circulating on the market, including the USDC and Tether (USDT) linked to the dollar, are not approved by the authorities.
It is expected that the situation will change as soon as the law comes into effect, since the FSC will have to give all Stablecoins green light issued in Taiwan, together with their issuing and reserve assignments.
FSC chairman Peng Jinlong says that the banks will manage the Stablecoins together with the central bank.
In the first quarter of 2025, the FSC will also perform a test with crypto-reducing local banks.
Last year the regulator gave all crypto -based companies the mandate to register before September, otherwise heavy penalties will be imposed. The agency now allows professional traders to invest in foreign crypto Exchange-Traded Funds (ETFs).
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