Financial Supervisory Commission 5/7: VASP bill sent to the Legislative Yuan; 5 banks approve custody of virtual assets; Bank of Taiwan completes a gold token pilot program

Financial Supervisory Commission (FSC) Chairperson Peng Jinlong will travel to the Legislative Yuan’s Financial and Economic Committee on May 7 to deliver a special report titled “Progress and Prospects for the Promotion of Financial Technology Development.” Central News Agency (CNA) has summarized the virtual-asset-related progress covered in this report: the draft Virtual Asset Service Provider (VASP) Act was approved by the Executive Yuan on April 2 and submitted to the Legislative Yuan; pilot virtual asset custody business has been approved for five banks; and real-world asset (RWA) tokenization has completed concept verification for domestic and foreign bonds and funds, while Bank of Taiwan, together with eight banks, completed a cross-bank on-chain gold token settlement proof-of-concept.

VASP Act sent to the Legislative Yuan on 4/2, stablecoin chapter included: permission-based, full-reserve, no interest paid

The draft Virtual Asset Service Provider Act is the core progress in this report. The report states that the draft was reviewed and approved by the Executive Yuan on April 2 of the 115th year (2026) and submitted to the Legislative Yuan; after the bill completes the legislative process, the Executive Yuan will designate an implementation date, and the FSC will use it to draft related subsidiary regulations.

The draft includes a dedicated chapter on “Stablecoin Issuance and Management,” which specifies the requirements for issuing stablecoins within Taiwan:

Must obtain approval from the competent authority

Maintain full-reserve assets

Issue and redeem stablecoins at par value

May not pay interest

Establish internal control, internal audit, and cybersecurity management systems

Report and disclose relevant information

After the enactment of the standalone legislation, the FSC will set and issue the related subsidiary regulations and open applications to issue stablecoins. These requirements align with the direction of the U.S. GENIUS Act and the EU MiCA stablecoin management rules: issuers hold reserve assets equal to the amount in circulation, must not pay interest, and must periodically disclose reserve details.

Bank-side implementation: five banks’ virtual asset custody pilots, and Bank of Taiwan with eight banks completes gold token settlement

Starting in January of the 114th year (2025), the FSC opened a topic-based pilot program for financial institutions to apply for virtual asset custody business. By the end of April of the 115th year (2026), five banks had been approved to participate in the pilot. To strengthen risk controls for banks handling virtual asset custody business, the FSC issued a letter in March 115 to the bankers association to develop relevant practical guidelines.

For RWA tokenization progress, the FSC clearly indicated that it will start with bonds and gold as the implementation targets. Specific execution results:

Concept verification completed for tokenization targets including domestic bonds, foreign bonds, and funds (POC)

Bank of Taiwan, together with eight banks, completed a joint pilot for cross-bank on-chain gold token settlement and withdrawal of physical gold

Supporting organizations such as the Taiwan Depository & Clearing Corporation (TDCC) and others formed an “RWA Tokenization Platform Project Working Group” to study platform operating models, directions for adopting blockchain technology, a legal framework, and market infrastructure

In addition, the FinTech Industry Alliance launched its “Financial Dedicated Large Language Model (FinLLM)” project in April of the 115th year. In the first phase, it will be built on bank industry knowledge, with a planned launch by the end of the 115th year.

Next steps: routine communication between the financial industry × VASP, AI agent governance, and post-quantum cryptography guidance

The report proposes specific milestone events for future promotion:

Routine communication mechanism between the financial industry and VASP operators: in April of 115, the first seminar and exchange meeting was held, covering issues such as professional technologies in the virtual asset field, business scenario applications, risk controls, and legal/ regulatory formalization; future regular events are planned

Post-quantum cryptography migration guidance for the financial industry: expected to be released in June

Governance for agentic AI (AI agents): the FSC will study amendments and revisions to related regulations or guidelines to guide financial institutions in safe usage

AI risk classification framework: in coordination with the draft being studied by the Ministry of Digital Development based on the AI Basic Law; inventory financial industry AI application scenarios and potential risks; and develop risk-based application management rules

This report mainly quantifies the execution progress of existing policies: from the VASP Act draft submitted to the Legislative Yuan, approval of virtual asset custody for five banks, Bank of Taiwan and the eight banks’ gold token settlement pilot going live, to the launch of the banking-sector FinLLM model by the end of 115. The three subsequent concrete milestone events are: the progress of the VASP Act’s review in the Legislative Yuan, the timetable for the FSC to issue stablecoin issuance authorization subsidiary regulations, and the timing for RWA tokenization to move from POC to formal commercialization.

This article FSC 5/7: VASP Act sent to the Legislative Yuan, five banks approved for virtual asset custody, Bank of Taiwan completes gold token pilot first appeared on Chain News ABMedia.