The post Taiwan to Propose Law Allowing Banks to Issue Stablecoins by June 2025 appeared on BitcoinEthereumNews.com.
Taiwan plans to propose a law by June 2025 allowing banks to issue stablecoins, enhancing virtual asset trading with TWD. The Taiwan government plans to propose a new law for Virtual Asset Service Providers (VASPs) by June 2025. This legislation will allow banks to issue stablecoins for the first time. Stablecoins make it easier for people to first buy virtual currencies by connecting Taiwan’s official currency, the New Taiwan Dollar, to these crypto assets. The Financial Supervisory Commission (FSC) plans to make public the first version of the VASP law in June. FSC Chairman Peng Jinlong says they want to give investors a stable and trustworthy way to trade in virtual currency. Investors will find the market better to use and invest in when stablecoins connect to an official currency like the TWD. Digital assets called stablecoins maintain their worth by linking to stable national currencies like the US dollar or the TWD. They offer two main benefits: their primary role is to protect investments during unstable market times. People can trade their Bitcoin for stablecoins when prices swing a lot to help keep their money secure. Second, these stablecoins make buying and selling between countries quicker and cheaper than other payment methods. Taiwan to Require FSC Approval for Stablecoins Issuers Stablecoins let investors store their cryptocurrency safely when the market’s too unpredictable to stay in. Investors can later use their stablecoins to buy their own country’s currency or put them back into investing in digital currencies. The popular stablecoins USDC and USDT have no official approval from current regulators. The businesses that create these coins say they store US dollar reserves to match the number of coins they produce. Moving forward, anyone who wants to make stablecoins in Taiwan will have to get the green light from the FSC.…