Taiwan is set to introduce its first regulated stablecoin by late 2026, according to Financial Supervisory Commission Chair Peng Jin-long. The draft Virtual Assets Service Act has cleared initial cabinet reviews and is expected to undergo a third reading in the upcoming legislative session. Regulations for stablecoins are anticipated within six months. The stablecoin's peg remains undecided, with options including the U.S. dollar or the Taiwan dollar. Initial issuance will be led by financial institutions, but the currency backing is yet to be resolved, posing challenges for compliance with Taiwan's stringent offshore currency controls.