AI Supply Chain Drives Cross-Border Capital Flow Demand, Taiwan's Virtual Asset Subsidiary Regulations Expected to Take Effect as Early as Q1 Next Year

Peng Jinlong, Chairman of Taiwan’s Financial Supervisory Commission (FSC), stated that the Virtual Asset Service Provider Act was passed following its third reading on June 30 this year. The FSC is currently drafting nine subsidiary regulations covering stablecoin-related provisions, which are expected to be published and implemented as early as the first quarter of next year. With the advancement of technologies such as AI and blockchain, the financial markets in Taiwan and globally are evolving toward a landscape where traditional finance, digital finance, and blockchain finance operate on three parallel tracks. Rising demand for cross-border payments, trade financing, and fund allocation within semiconductor supply chains has highlighted the role of stablecoins, blockchain, and fintech as new infrastructure supporting cross-border capital flows.