The Central Bank of Taiwan is actively involved in discussions on stablecoin regulation ahead of the upcoming public hearings on the Virtual Asset Services Act.
The Role of Stablecoins in Taiwan’s Financial System
The Central Bank of Taiwan has been closely monitoring the role of stablecoins, which it views primarily as a medium for transactions within the virtual asset market. They serve as digital cash used to buy and sell other cryptocurrencies and digital goods.
Central Bank's Recommendations for Stablecoin Regulation
The central bank has recommended treating stablecoin payments like electronic payments, suggesting that they should adhere to the same principles applied to traditional electronic solutions, including risk management and regulatory compliance.
The Future of Stablecoin Regulation in Taiwan
The central bank's current stance raises questions about the requirements that will be imposed on stablecoins in the future, including adherence to KYC standards and transaction monitoring. This necessitates preparation from issuers and users to ensure financial stability.
The Central Bank of Taiwan's discussion on stablecoin regulation highlights its proactive approach to integrating digital assets into the financial system, aiming to create clear and safe conditions for using stablecoins.
