| dc.description.abstract | Stablecoins, as virtual assets pegged to fiat currencies, commodities, or other assets, have become key instruments in the payment market due to their value stability and efficiency. However, recent incidents, such as the FTX bankruptcy and the Terra-Luna collapse, have exposed significant legal challenges, including reserve transparency, legal definitions, and user protection. These events highlight the potential risks stablecoins pose to financial stability, emphasizing the need for clear legal frameworks, standardized reserve requirements, and robust consumer protections.
Countries like Japan, the European Union, and Singapore have adopted distinct regulatory approaches. Japan amended its Payment Services Act to enforce strict capital and reserve requirements on stablecoin issuers. The EU introduced the Markets in Crypto-Assets Regulation (MiCA), creating a comprehensive regulatory framework for virtual assets. Singapore incorporated stablecoins into its Payment Services Act, focusing on value stability, capital requirements, redemption, and disclosure.
In Taiwan, stablecoins are not yet covered under the Electronic Payment Institutions Act and are only partially addressed by anti-money laundering laws. Their dual role as payment instruments raises challenges related to consumer protection, reserve management, and financial stability. To address these issues, regulatory amendments are needed to clarify the legal status of stablecoins, implement tiered oversight, and enhance reserve transparency, ensuring a balance between financial innovation and regulatory stability.
This thesis examines stablecoin regulations domestically and internationally, proposing amendments to Taiwan’s Electronic Payment Institutions Act to support digital financial innovation while strengthening user protections. | en_US |