The post Taiwan government plans to propose a draft law on virtual asset service providers (VASPs) in June 2025 appeared on BitcoinEthereumNews.com.

The Taiwan Financial Supervisory Commission (FSC) has revealed plans to propose a draft law on virtual asset service providers (VASPs) in June 2025. The draft will allow Taiwan banks to issue stablecoins for the first time. Although Taiwan’s authorities have not yet approved the stablecoins currently circulating in the market, the country still uses them because they are backed by U.S. dollar assets. All VASP providers are also required to follow the new VASP registration regulations, which took effect this year, and complete the registration process. FSC proposes a draft law on VASPs in June  🇹🇼TAIWAN TO PROPOSE VIRTUAL ASSET LAW BY JUNE 2025, ALLOWING BANKS TO ISSUE STABLECOINS Taiwan plans to introduce a virtual asset law by June 2025, which will allow banks to issue stablecoins, bridging traditional and digital finance. This move aims to regulate and integrate… pic.twitter.com/SnG82h8MDc — Mario Nawfal (@MarioNawfal) January 23, 2025 FSC Chairman Peng Jinlong highlighted that stablecoins will serve as a bridge between legal tender and cryptocurrency. Jinlong also acknowledged that stablecoins will provide Taiwan investors with a trading portal.  Banking Bureau Director Zhuang Xiuyuan said that the competent authorities did not approve stablecoins such as USDT and USDC, which are currently circulating in the market. Xiuyuan argued that the cryptocurrency industry claimed stablecoins were backed by U.S. dollar assets. The amendment of the law in the future will require all stablecoins issued in Taiwan to be approved by the FSC, including issuer qualifications and reserve allocation. Xiuyuan acknowledged that stablecoins moving from “virtual” to the “real” economy would involve monetary policy and financial stability issues, which need to be discussed with the central bank. On January 9, Peng Jinlong, chairman of Taiwan’s financial regulatory department, said he took a cautious and friendly attitude towards the virtual asset market. The draft of the…

---

Filed under: News - @ January 23, 2025 8:19 am