When will the special law for virtual currency in Taiwan regulate Stable Coin and BTC ETF, and when will it be open to retail investors for multiple trustees? FSC: Six-month observation period

1/22 FSC Lunar New Year press conference hosted by Chairman Peng Jinlong. In the press conference, FSC revealed the regulatory plan for managing Stable Coins. At the same time, regarding the BTC ETF that was opened last year for secondary trust, FSC also stated that it will evaluate opening it to retail investors after a six-month observation period.

Cryptocurrency special law to be submitted for review in June, including Stable Coin regulation

The Financial Supervisory Commission (FSC) stated that Taiwan's regulation of virtual currencies is currently in the fourth phase, which involves enacting special laws to enhance the transparency and regulation of the virtual asset market. The specific draft of the special law for Virtual Asset Service Providers (VASPs) is expected to be submitted to the Executive Yuan for review by the end of June this year.

Stable Coins included in co-management, clear division of labor between FSC and Central Bank

Peng Chun-Lung, Chairman of the Financial Supervisory Commission, pointed out at the meeting that a consensus has been reached with the Central Bank regarding the regulation of Stable Coins. According to the division of labor, the central bank will focus on the issuance and management of Central Bank Digital Currencies (CBDC), while Stable Coins will be jointly supervised by the central bank and the Financial Supervisory Commission. The positioning of Stable Coins is also clearly defined as a key bridge connecting the legal tender and the virtual asset world. This policy will become the cornerstone for the regularization of the virtual asset market.

During the questioning at the Legislative Yuan, the FSC stated that it would actively address Stable Coin in the special law for virtual assets. This means that there will be more specific regulations established for Stable Coin in the legislation, possibly including its issuance, trading, and capital requirements.

The February public hearing is launched, and the Stable Coin and VASP special law will be submitted for review before the end of June.

The Financial Supervisory Commission's Securities and Futures Bureau stated that a public hearing on the regulatory legislation for Virtual Asset Service Providers (VASPs) and Stable Coins will be held in February, inviting experts, scholars, VASP associations, and representatives from relevant organizations for discussions. Subsequently, the draft regulations will be announced in March. After collecting public opinions, the final version of the regulatory legislation is planned to be submitted to the Executive Yuan for review before the end of June this year.

According to the plan, the draft law will include the following key chapters:

General Provisions

Virtual Asset Service Provider (VASP) Management

Establishment and Function of VASP Association

Stable Coin Issuance and Management

Regulatory and auditing mechanisms

Penalties and supplementary provisions

At the same time, the FSC's regulatory focus on VASP covers multiple regulations, including organizational structure, minimum capital requirements, personnel qualification conditions, financial reporting requirements, and customer fund protection, significantly raising the operating standards of the virtual asset service industry.

Registration system helps promote industry integration, virtual asset market moves towards regularization

Peng Jinlong pointed out that after the law is completed, virtual asset operators will adopt a 'registration-based' management model, which can be regarded as an upgraded version of the anti-money laundering system. He emphasized that after the legislation is completed, the establishment conditions, capital requirements, and operational norms of virtual asset operators will be clarified, which will not only promote integration among operators, but also enhance service quality and market transparency.

Peng Jinlong further stated that due to the significant increase in compliance costs for regulated entities, small businesses may face pressure to exit the market or be acquired, ultimately promoting market concentration and standardization. He believes that such development is an optimization for the industry, contributing to the normalization and sustainable development of the virtual asset market.

Subsequent observation: Is BTCETF open for full investment?

Regarding whether to relax the investment restrictions for professional investors in BTC ETF, Peng Jinlong said that the Financial Supervisory Commission (FSC) will observe for a period of six months and then decide whether to fully open it based on market performance and investment risk assessment. Although this policy is still in the exploratory stage, it shows that the FSC is actively responding to the global trend of virtual asset market development.

The virtual asset regulatory process announced by the FSC not only clarifies the regulatory scope of Stable Coin and virtual asset service providers, but also sends a signal of policy transparency and market standardization. In the future, with the implementation of specialized laws, the development direction of Taiwan's virtual asset industry will become clearer, and it is expected to attract more domestic and foreign resources to enter this emerging field.

When will the special law on virtual currency in Taiwan regulate Stable Coin, BTC ETF, and when will it be open to retail investors for multiple commissions? FSC: Half-year observation period, as reported first in ChainNews ABMedia.