Financial Supervisory Commission: Taiwanese import and export companies "are already using stablecoins for payments," and some banks have begun to deploy.

The Financial Supervisory Commission released information indicating that although the “Virtual Asset Service Law” including the Stablecoin Regulations has not yet come into effect, Taiwanese import and export traders are already accepting and paying with USD stablecoins, prompting financial institutions to accelerate their deployment plans.
(Background summary: The 2025 “Taiwan Cryptocurrency Industry Report” has implemented new regulatory laws, CBDC sandbox trials are underway, and investment profits have significantly increased…)
(Additional background: In 2026, the debate continues over whether “stablecoins are like EasyCards.” How much more nonsense will Taiwan’s traditionalists talk?)

The FSC has provided more concrete “use case examples” for stablecoins in Taiwan’s next steps. According to the Commercial Times, Deputy Chairperson Zhuang Xiuyuan pointed out that as stablecoins become popular in cross-border transactions, many import and export companies in Taiwan have begun using stablecoins for payments. She straightforwardly stated that as traders’ stablecoin holdings grow, they will, based on trust in traditional financial institutions, seek assistance from financial institutions for subsequent storage and management.

In this context, banks are expected to play the role of “custodian” for stablecoin assets. Zhuang Xiuyuan noted that the stablecoins obtained by companies from abroad are mainly USD-pegged stablecoins, and these enterprises tend to look for trustworthy Taiwanese financial institutions to hold them. This new demand is prompting some banks to proactively develop related services to support stablecoin activities.

From USD Stablecoins to TWD Stablecoins

Zhuang Xiuyuan further explained that if companies start using USD stablecoins for supply chain payments, the cross-border nature of the supply chain will naturally generate demand for different currencies, including the potential for domestic New Taiwan Dollar stablecoins.

The FSC expects that when dealing with cross-border payments, whether involving fiat currencies or stablecoins, financial institutions can provide “seamless” services, allowing enterprises to handle payments without experiencing gaps between traditional financial systems and on-chain assets. From current interactions with financial industry players, regulators have observed that some banks see concrete application scenarios and are quietly preparing, including several banks positioning themselves as custodians for stablecoin assets, to prepare for future multi-currency settlement modes.

Progress on Regulations, VASP Management, and Offshore Platform Risks

On the regulatory front, FSC Chairperson Peng Jinlong stated on January 29 that the draft “Virtual Asset Service Law” has been completed and reviewed by the Executive Yuan, and will next be submitted for approval by the Executive Yuan before being reported to the Legislative Yuan for review. This law is seen as a key step in bringing stablecoins and virtual assets into a clear regulatory framework, laying a legal foundation for cooperation between financial institutions and Virtual Asset Service Providers (VASPs).

However, there is still a significant gap in the current market situation. The FSC statistics show that about 70-80% of Taiwanese use offshore virtual asset trading platforms, but none of the nine qualified VASP operators listed are offshore platforms. This “people are using them, but operators are not on the register” situation raises concerns about potential loopholes for fraud and makes it difficult to fully protect investors’ assets.

In response, Gao Jingping, Director of the Securities and Futures Bureau, emphasized that whether domestic or offshore operators, as long as they engage in virtual asset services within Taiwan, they must obtain approval from the competent authority according to the current Anti-Money Laundering Act; otherwise, they will be considered illegal and may face criminal liability. In other words, as stablecoin and virtual asset businesses expand, the regulatory framework will tighten accordingly.

In addition to account separation, technical and cybersecurity standards are also being raised. Considering the higher risk of hacking hot wallets, the FSC issued a directive in December last year requiring core systems to meet certain cybersecurity certification standards, and stipulating that a significant proportion of customer virtual assets must be stored in cold wallets. Based on market value, the proportion of assets in cold wallets must not be less than 85%; if calculated by the number of holdings per customer, the proportion must not be less than 75%.