Taiwan Banks Secure Stablecoin Power: Institutional Moats Crush DeFi Innovation
The Sovereign Gatekeeper of Digital Liquidity Sovereign Gatekeeping: Why Taiwan's New Stablecoin Law Signals the End of Permissionless Liquidity Regulators are not banning stablecoins; they are simply turning them into state-sanctioned bank products. The Monolithic Infrastructure of State-Backed Assets Taiwan's passage of the Virtual Asset Service Act on its third reading on June 30, 2026, marks a pivotal shift in the global digital asset ecosystem. The legislative mandate establishes an uncompromising regulatory framework for the region's digital asset platforms, forcing issuers to secure explicit Financial Supervisory Commission approval and maintain full reserve backing in domestic trust institutions. By imposing strict local custody rules and a total ban on interest yield, the state is effectivel...