Former Taiwan Premier Urges Unified Stablecoin Strategy Under New Crypto Law
Taiwan’s passage of the Virtual Asset Service Act marks a shift toward a dedicated legal framework for the crypto sector. Former Premier Chen Chong said stablecoins should not be treated merely as financial products because they touch payment systems, foreign-exchange management, financial stability and national security. He argued that policy should be coordinated at the highest levels of government rather than left to a single regulator.
Chen said the law’s effectiveness will depend on sustained attention from senior officials and clear cross-agency coordination. He warned that overlapping oversight by the Financial Supervisory Commission and the Central Bank of the Republic of China (Taiwan) could create regulatory gaps if their review powers are not clearly divided. The government should define responsibility for stablecoin issuance, payments and risk controls as it implements the new regime, he said.
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The history behind this eventSean Chen Warns Taiwan Risks Missing Global Stablecoin Push
Stablecoins backed by fiat currency or liquid reserves are emerging as infrastructure for cross-border payments and supply-chain finance, while raising questions over monetary sovereignty, reserve safeguards and financial stability. Former Taiwan premier Sean Chen, now chairman of the New Generation Financial Foundation, says Taiwan must clearly define the roles of the Financial Supervisory Commission and the central bank and establish a coherent legal framework for stablecoin issuance and oversight.
Taiwan’s legislature passed the Virtual Asset Service Act on June 30, 2026, the same day Open Standard unveiled Open USD, or OUSD. The initiative says more than 140 companies — including Visa, Mastercard, Stripe, BlackRock and Coinbase — have signed up, with fee-free minting and redemption and a launch planned by year-end. Chen said the roster includes no Taiwanese companies and warned that delayed regulation and continued absence from global crypto-finance alliances could leave Taiwan’s technology and financial sectors increasingly marginalized.
Taiwan Passes Its First Dedicated Crypto Law
Taiwan previously regulated the crypto industry primarily through a registration regime under the Money Laundering Control Act, without comprehensive sector-specific legislation. As the virtual-asset market has expanded and fraud cases have proliferated, the Legislative Yuan passed Taiwan’s first dedicated crypto statute, the Virtual Asset Service Act, on its third reading. The law places virtual asset service providers, or VASPs, under a licensing regime. It marks a major milestone for Taiwan’s fintech framework, with implications for both Web3 development and market integrity.
The legislation could formally take effect as early as the first quarter of 2027, and eight Taiwanese VASPs are already preparing to apply for new licenses. The Financial Supervisory Commission’s Banking Bureau said the law would impose three hurdles for stablecoin issuance and introduce heavier penalties for operating without a license or engaging in fraud or market manipulation. Violators could face up to 10 years in prison. Regulators are also encouraging companies including CTBC and Taiwan Mobile to explore stablecoin applications.
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