According to Golden Finance, a public hearing on the “Virtual Asset Services Act” will be held in Taiwan, China on June 12th. This meeting will focus on the regulatory issues of virtual assets, especially the regulation of stablecoins, which has attracted much attention. It is learned that local regulatory authorities, after in-depth research, believe that stablecoins mainly play the role of a medium of exchange in the current virtual market. However, as its usage scale gradually expands and application scenarios continue to increase, especially if it is widely involved in the cross-border payment field, it is highly likely to have an impact on the stable operation of the existing payment system and financial system.
Based on this, the regulatory authorities have proposed that stablecoins used for payment purposes should be subject to the same regulatory standards as current electronic payments, following the principle of “the same business, the same risk, and the same norms”. This measure is aimed at eliminating regulatory arbitrage phenomena, maintaining a fair competitive market environment, and ensuring the stability of the financial market order. Stablecoins, due to their characteristic of being pegged to fiat currencies, play the role of a price stabilizer in virtual currency transactions, and their trading volume is increasing day by day.
However, at the regulatory level, the systemic risks it may bring cannot be ignored. By incorporating stablecoins into a regulatory framework as strict as that for electronic payments, it helps to accurately identify and manage related risks, safeguarding the rights and interests of investors and the security of the financial system.
This public hearing is an important step for Taiwan to improve its virtual asset regulatory system. It is expected to invite industry experts, practitioners and relevant stakeholders to participate in the discussion together, widely listen to the opinions of all parties, and lay the foundation for the refinement and implementation of subsequent regulatory policies. With the rapid development of the global virtual asset market, Taiwan region has been actively exploring reasonable and effective regulatory paths. The discussion on the regulatory model of stablecoins will also provide certain reference significance for the world, promoting the healthy development of the virtual asset industry in a standardized manner.
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