Taiwan Passes Sweeping Crypto Law With Licensing and Stablecoin Rules

The law also introduces specific requirements for stablecoins, including reserve-and-trust rules. Such provisions typically require issuers to hold assets backing the tokens they put into circulation and to safeguard those reserves through trust arrangements, measures intended to reduce the risk of collapse and protect holders.

Decrypt reported that the framework represents a significant tightening of standards for companies operating in Taiwan's digital asset market.

Why It Matters for Europe

Taiwan's action lands as the European Union continues to roll out its own Markets in Crypto-Assets (MiCA) regulation, which similarly places licensing obligations on crypto service providers and sets strict reserve requirements for stablecoin issuers. The parallels suggest a growing international consensus around the core pillars of crypto oversight: supervised licensing and backing rules for tokens pegged to fiat currencies.

For European firms and investors, regulatory alignment across major markets can lower compliance friction and create clearer pathways for cross-border operations. Companies that already meet MiCA standards may find it easier to expand into jurisdictions adopting comparable rules, while global stablecoin issuers face mounting pressure to satisfy multiple overlapping reserve regimes.

The convergence also reflects a broader shift away from the largely unregulated crypto environment of earlier years. As more jurisdictions codify licensing and stablecoin safeguards, the market is trending toward a model in which digital asset businesses operate much like traditional financial institutions, subject to supervision and capital-style requirements.

The Broader Picture

Stablecoins in particular have become a focal point for regulators worldwide, given their role in linking crypto markets to conventional currencies and their potential systemic importance if adoption grows. By imposing reserve-and-trust obligations, Taiwan joins a list of jurisdictions seeking to ensure these tokens remain fully backed and redeemable.

The full operational details of Taiwan's regime, including timelines for licensing and enforcement, will shape how quickly the industry adapts. But the direction of travel is clear: formal oversight of crypto firms is becoming the global norm rather than the exception, a development that resonates well beyond Taiwan's borders.

Bitcoin climbed back above $60,000 after weaker US economic data revived hopes that the Federal Reserve's hawkish stance may be softening.