Draft Legislation Overview
The Financial Supervisory Commission (FSC) is finalizing a draft of the Virtual Asset Special Act, with industry public hearings scheduled for February 2025. The comprehensive bill, including stablecoin regulations, will be submitted to the Executive Yuan by June. FSC Chairperson Peng Jinlong emphasized that stablecoin markets will be co-managed by the FSC and the Central Bank.
Key Developments
- Stablecoin Integration: The draft designates stablecoins as a bridge between fiat currencies and virtual assets, requiring joint oversight.
- CBDC Clarification: Central Bank Digital Currency (CBDC) remains under the sole jurisdiction of the Central Bank.
Regulatory Phases
- Anti-Money Laundering (AML) Framework: Initial focus on AML compliance.
- Industry Self-Regulation: Establishment of guilds and internal control standards.
- Registration System: Replacement of AML declarations with a registration mechanism.
- Legislative Finalization: Draft submission to the Executive Yuan by mid-2025.
Stablecoin Market Rules
Banking Bureau Chief Chuang Hsiu-yuan noted:
- Current popular stablecoins (e.g., USDC) lack official approval.
- Future regulations will mandate issuer authorization and reserve requirements.
Investment and Innovation
- Professional Investors: Permitted to invest in overseas-listed virtual asset ETFs (e.g., Bitcoin spot ETFs) via复委託, with a 6-month review period for potential public access.
- Tokenization Initiative: A consortium of 6 financial institutions is advancing bond and fund tokenization, with pilot programs expected soon.
FAQs
Q: What’s the timeline for the Virtual Asset Special Act?
A: Public hearings in February, draft submission by June 2025.
Q: How will stablecoins be regulated?
A: Through joint FSC-Central Bank oversight, with strict issuer authorization and reserve rules.
Q: Can general investors access virtual asset ETFs?
A: Currently limited to professionals; expansion depends on a mid-2025 review.
👉 Explore the future of virtual asset regulation
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