Taiwan Launches Alliance to Secure Stablecoins and Virtual Assets
Taiwan’s virtual-asset industry is preparing for tighter oversight under the Virtual Asset Service Act, raising the stakes for private-key custody, transaction monitoring and secure connections with conventional banks. The expansion of stablecoins and tokenized real-world assets, or RWAs, also creates new operational and cybersecurity risks because failures could directly affect payment flows, asset ownership records and customer funds.
The Taiwan Information Security Association has joined CHT Security, Provision Information and other industry participants to establish the Stablecoin and Virtual Asset Security Alliance. The group plans to combine high-grade hardware security modules, blockchain technology and security operations center monitoring to help virtual-asset service providers connect safely with traditional banks. Its work will focus on strengthening regulatory compliance and protecting stablecoins and RWA assets as Taiwan’s new legal framework takes effect.
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The history behind this eventTaiwan’s Virtual Asset Service Act Advances Stablecoin Compliance as State-Owned Banks Weigh Cross-Border Payments
Stablecoins maintain their value through backing by fiat currencies or low-risk assets and can support round-the-clock cross-border remittances, payment clearing and digital-asset custody. But inadequate rules governing reserve assets, redemptions and anti-money laundering controls could threaten financial stability. Taiwan has therefore placed oversight jointly in the hands of the Financial Supervisory Commission and the central bank, while aligning its framework with regimes including the European Union’s MiCA.
The Executive Yuan approved the draft on April 2, 2026, and the Legislative Yuan passed it on its third reading on June 30. The law requires issuers to obtain permission from the Financial Supervisory Commission and approval from the central bank, maintain reserves equal to 100% of issuance and place them in trust. Nine supporting regulations could take effect together as early as the first quarter of 2027. First Bank is evaluating the introduction of related services, while Hua Nan Bank plans to participate in a payment-clearing pilot. No issuance amount has been disclosed.
Taiwan Banks Eye Stablecoins, Crypto Custody Under New Law
Taiwan’s Virtual Asset Service Act establishes a regulatory framework for New Taiwan dollar-denominated stablecoins and gives banks a clearer basis for entering digital-asset businesses. Stablecoins could reduce settlement friction in cross-border remittances and corporate payments while serving as transaction instruments for real-world asset tokenization, or RWA, making them a central focus as lenders assess their next stage of digital-finance expansion.
Following the law’s implementation, Taiwanese banks are evaluating two main opportunities: virtual-asset custody and stablecoin-related financial services. No specific launch dates or investment amounts have been disclosed. Banks see potential uses in remittances, business payments and RWA transactions, but remain cautious about whether reserve assets will be sufficiently transparent and whether market liquidity can support reliable redemption and large-value transfers.
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