Taiwan FSC Weighs Allowing Listed Companies to Pay Dividends in U.S. Dollars

Foreign investors hold a large share of Taiwan-listed stocks, and leading companies such as TSMC pay hundreds of billions of New Taiwan dollars in dividends each year. Concentrated foreign-currency outflows by overseas investors often cause sharp swings in the New Taiwan dollar. To reduce currency-conversion friction, the Financial Supervisory Commission is allowing listed and over-the-counter companies to pay dividends in foreign currencies. The potential impact of foreign-currency stablecoins on Taiwan’s financial system has also become a regulatory focus for the central bank following passage of the Virtual Asset Service Act.

The Financial Supervisory Commission formally approved the “TSMC clause,” allowing listed and over-the-counter companies to choose to pay dividends in U.S. dollars from 2027. Central Bank of the Republic of China (Taiwan) Governor Yang Chin-long said the policy would help streamline currency conversion for foreign investors and stabilize fluctuations in the New Taiwan dollar. Addressing the newly passed Virtual Asset Service Act, Yang said foreign-currency stablecoins are subject to the laws of their issuing jurisdictions and are therefore relatively difficult to regulate. The central bank will continue to assess the issue cautiously.