The independent government agency regulating Taiwan’s financial markets will reportedly propose a special law that will allow banks to issue stablecoins.

The United Daily News reports that Taiwan’s Financial Supervisory Commission (FSC) plans to submit the draft legislation on virtual asset service providers (VASPs) in June.

The bill includes a provision that will give banks the authority to issue stablecoins—crypto assets designed to maintain a stable value by being pegged to a commodity or currency, or regulated by an algorithm.

Bank director Zhuang Yuyuan says the stablecoins circulating in the market, including the dollar-pegged USDC and Tether (USDT), are not approved by the authorities.

The situation is anticipated to change once the law takes effect as the FSC will have to greenlight all stablecoins issued in Taiwan, along with their issuer and reserve allocations.

FSC Chairman Peng Jinlong says banks will jointly manage the stablecoins with the central bank.

The FSC is also set to run a trial of crypto custody services with local banks in the first quarter of 2025.

Last year, the regulator mandated all crypto-based companies to register by September or face harsh penalties. The agency now allows professional traders to invest in foreign crypto exchange-traded funds (ETFs).

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

Go to Source to See Full Article
Author: Rhodilee Jean Dolor

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details