The virtual asset landscape in Taiwan is undergoing a transformative shift, driven by upcoming regulatory frameworks and strategic moves from major telecom and financial players. With the Virtual Asset Service Provider (VASP) Act draft now under administrative review, the stage is set for a new era of digital finance. This pivotal legislation aims to bring cryptocurrency exchanges and stablecoin issuers into a compliant, transparent ecosystem—opening doors for mainstream adoption and institutional participation.
As the government prepares to formalize rules for digital assets, industry giants like Far EasTone (Far Eastern Group) and Taiwan Mobile (affiliated with Fubon Financial Group) are positioning themselves at the forefront of this financial revolution. Their entry signals a broader trend: traditional industries recognizing the immense potential in blockchain technology, decentralized finance, and digital currency infrastructure.
The VASP Act: A Regulatory Milestone for Digital Trust
On June 27, the Financial Supervisory Commission (FSC) submitted the Virtual Asset Service Act draft to the Executive Yuan for review—a critical step toward establishing a clear legal framework for virtual asset service providers. This move marks a turning point in Taiwan’s fintech evolution, transitioning from an unregulated environment to one governed by oversight, accountability, and consumer protection.
The proposed law includes dedicated provisions for stablecoin issuance and management, laying the groundwork not only for private digital tokens but also for future Central Bank Digital Currencies (CBDCs). By regulating how stablecoins are issued, backed, and transacted, the act aims to prevent money laundering, fraud, and systemic risks—while fostering innovation.
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According to Hong-Chun Wen, Vice Chairman of the Fintech Association of Taiwan, the VASP Act is being positively received within the crypto community. “It allows only qualified, well-structured platforms to operate,” Wen noted. “This builds trust—not just among traders, but among everyday users who are curious about digital investments.”
Bridging Traditional Finance and Blockchain Economies
One of the most significant impacts of the VASP Act will be its role as a bridge between traditional finance and blockchain-based economies. Stablecoins such as USDT (Tether) and USDC (USD Coin)—pegged 1:1 to the U.S. dollar—are already widely used in cross-border transactions due to their speed and low fees. Once legally recognized under the new framework, these assets could become integral to Taiwan’s financial infrastructure.
Wen emphasized that compliant stablecoins enable faster payments, instant remittances, and seamless integration across platforms. “When you can transact in seconds across borders without high fees, that’s when real economic value is unlocked,” he said.
Moreover, financial institutions like Cathay United Bank and Fubon Financial are already involved through investment vehicles such as the 00909 Digital Payment Services ETF, which holds stakes in global crypto platforms like Coinbase—the primary issuer of USDC. This early positioning suggests that Taiwan’s financial sector sees digital assets not as speculative tools, but as foundational components of future financial systems.
Telecom Titans Enter the Web3 Arena
With over 9 million subscribers each, Taiwan Mobile and Far EasTone possess massive user bases—making them ideal gateways for introducing digital assets to the general public.
Taiwan Mobile Launches TWEX: A Gateway for Mainstream Users
Taiwan Mobile has taken a bold step by launching TWEX (Fu Sheng Digital), a homegrown virtual asset exchange designed specifically for non-crypto-native users. As Han Kun-Chu, Deputy General Manager of Taiwan Mobile’s Web3 division and CEO of TWEX, explained:
“Our goal isn’t to serve hardcore crypto traders. We want to offer our customers a simple way to start investing in digital assets—even with spare change.”
TWEX emphasizes accessibility, security, and ease of use—key factors in driving mass adoption. The platform has already attracted interest from small-to-medium enterprises (SMEs) and private investment firms seeking institutional-grade custody solutions.
Backed by Fubon Financial, one of Taiwan’s largest financial conglomerates, TWEX aims to become a trusted local brand in the Web3 space—offering regulated services that align with both consumer needs and regulatory expectations.
Far EasTone Bets on MaiCoin Through Strategic Investment
Meanwhile, Far EasTone has opted for a partnership model by strategically investing in MaiCoin, Taiwan’s largest local cryptocurrency exchange. While full-scale operations await final regulatory approval, Far EasTone is already integrating crypto into its ecosystem—exploring uses for its fetnet points and FarPoint rewards program on blockchain networks.
With Trump’s pro-crypto stance influencing global sentiment—and U.S. legislation like the GENIUS Bill advancing stablecoin regulation—Far EasTone sees growing momentum. Currently serving around 900,000 crypto users in Taiwan (just 4% of the population), the company believes there’s vast untapped potential.
“Mobile phones are already payment terminals,” a spokesperson said. “Now, we’re preparing them to be crypto gateways too.”
Why Stablecoins Are at the Heart of the Revolution
Stablecoins represent the linchpin of this emerging digital economy. Unlike volatile cryptocurrencies like Bitcoin or Ethereum, stablecoins maintain price stability by being pegged to fiat currencies like the U.S. dollar or potentially, in the future, the New Taiwan Dollar.
Under Article 34 of the VASP Act draft, stablecoin issuance will be jointly regulated by the FSC and the Central Bank of China (Taiwan). According to central bank briefings, Taiwan plans a dual-track approach:
- CBDC (Digital New Taiwan Dollar): A central bank-issued digital currency for retail and wholesale use.
- TWD-pegged Stablecoin: A privately issued token backed 1:1 by NT$ reserves—similar to how USDC operates with USD.
This two-pronged strategy ensures competition, innovation, and redundancy—critical elements for building a resilient digital payment system.
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Wen highlighted that even controversial tokens like USDT have played a crucial role globally: “They’ve filled gaps where traditional banking fails—especially in remittances and emerging markets.” While USDT remains in a regulatory gray area today, its widespread use underscores demand for fast, reliable digital money.
FAQ: Your Questions About Taiwan’s Digital Currency Future
Q: What is the VASP Act?
A: The Virtual Asset Service Provider Act is a proposed law in Taiwan that regulates cryptocurrency exchanges, custodians, and stablecoin issuers—ensuring transparency, anti-money laundering compliance, and investor protection.
Q: Are stablecoins legal in Taiwan?
A: Not yet fully legalized, but the VASP Act draft paves the way for regulated issuance. Once passed, stablecoins like USDC or locally issued NT$-pegged tokens could operate legally under strict oversight.
Q: Can I buy crypto using my phone carrier account?
A: Not directly yet—but telecom companies like Taiwan Mobile and Far EasTone are building ecosystems that may soon allow mobile-based crypto purchases via integrated wallets or loyalty points.
Q: Will banks offer crypto services soon?
A: Major banks like Cathay and Fubon are already involved through ETFs and venture investments. Full banking integration depends on final regulations—but pilot programs could launch within 2–3 years.
Q: How does this affect everyday consumers?
A: You’ll likely see faster international transfers, lower remittance fees, new investment options via familiar apps (like telecom or banking platforms), and greater protection when using digital assets.
Q: Is Taiwan developing its own digital currency?
A: Yes. The Central Bank is exploring both a central bank digital currency (CBDC) and supporting private NT$-pegged stablecoins—creating a hybrid model similar to other advanced economies.
The Road Ahead: A New Financial Ecosystem Emerges
The convergence of telecom infrastructure, financial backing, regulatory clarity, and technological innovation is creating fertile ground for a homegrown digital economy in Taiwan.
With giants like Fubon, Far Eastern Group, and Cathay already involved—and global trends favoring digital assets—the timeline for widespread adoption is accelerating. Whether through ETFs, direct exchange ownership, or loyalty-point integrations, virtual assets are no longer niche—they’re becoming part of daily financial life.
As regulation solidifies and platforms like TWEX gain traction, Taiwan stands on the brink of a digital currency boom—one that could redefine how people save, spend, invest, and transact in the Web3 era.
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