Taiwan Legislature Reviews Interest-Bearing Stablecoin Rules, Eyes U.S. Regulatory Approach

Stablecoins maintain their value through fiat currency or highly liquid assets and are primarily used for payments and settlement. Paying interest to holders could turn them into deposit-like products, with implications for bank funding, deposit insurance and anti-money-laundering controls. Taiwan’s Financial Supervisory Commission has classified stablecoins as virtual assets in its draft Virtual Asset Service Act but has yet to set rules on interest payments.

The Legislative Yuan’s Legal Affairs Bureau published a legal analysis of interest-bearing stablecoins on March 3, 2026. It said most international regulatory regimes prohibit interest payments and recommended monitoring how the U.S. CLARITY Act regulates third-party rewards. The FSC said details were still under review and initially planned to let highly regulated financial institutions pilot New Taiwan dollar stablecoins. Issuance and redemption would be backed by 1:1 reserves, with related regulations to be drafted after the dedicated legislation passes.