TAIWAN Law and Practice Contributed by: Robin Chang, Ken-Ying Tseng and Eddie Hsiung, Lee and Li, Attorneys-at-Law
7. Tokenisation and Real-World Assets 7.1 Treatment Currently, Taiwan has not established specific regula- tions for RWA. Therefore, purely from a legal perspec- tive, any issuer wishing to launch an RWA programme must comply with existing regulatory frameworks. For instance, if the design of a particular RWA constitutes a securities offering, it must theoretically fit within the current framework of securities laws. However, since existing securities regulations – with the exception of those specifically for security tokens – do not account for blockchain technology, any attempt to issue an RWA with the characteristics of securities may prove practically infeasible under the current regulatory framework.
6.2.2 Stablecoin Regulation Pursuant to the Draft Act, to issue stablecoins in Taiwan, the issuer must apply for the approval from the FSC. Prior to granting such an approval, the FSC should consult with and obtain the consent of the Cen- tral Bank. Stablecoin issuers applying for the approval must also meet minimum paid-in capital requirement. Stablecoin issuers are required to establish and main- tain 100% reserve assets, which must be stored in domestic financial institutions. These reserve assets must be kept separate and independent from the issuer’s own assets and are subject to regular audits. Furthermore, if the total par value of the issued sta- blecoins reaches a certain threshold, the issuer must deposit a sufficient amount of reserves, which shall be factored into the aforementioned reserve assets. Any part of the stablecoin issuance involving foreign exchange must be handled in accordance with Cen- tral Bank regulations. Stablecoin issuers must issue and redeem stablecoins at par value. In principle, stablecoin issuers may not refuse a redemption request from a holder. Stablecoin issuers are prohibited from paying any form of interest or yield on the stablecoins they issue. 6.2.3 Backing Assets See 6.2.1 Fiat Currency and Algorithmic Stablecoins and 6.2.2 Stablecoin Regulation . 6.2.4 Special Considerations See 6.2.1 Fiat Currency and Algorithmic Stablecoins and 6.2.2 Stablecoin Regulation .
646 CHAMBERS.COM
Powered by FlippingBook