Taiwan VASP Legislation Approaching! E.SUN Financial Holding: Fully Deploying Stablecoins and Tokenization

Chairman Huang Nanzhou of E.SUN Financial Holding announced at the media briefing on February 24 that the future of the financial industry will move toward a “three-track financial” development pattern, encompassing traditional physical finance, digital finance, and the emerging virtual asset finance. Huang Nanzhou clearly stated that E.SUN Bank will “absolutely not be absent” from the stablecoin issuance and virtual asset sectors, and will actively participate in three major areas: cross-border settlement, blockchain financial services, and real-world asset tokenization (RWA).

Strategic Framework of the Three-Track Finance: E.SUN’s Three Major Deployment Directions

E.SUN Financial Holding CFO Cheng Guorong further revealed the company’s specific strategic focus in the virtual asset finance field during the briefing:

E.SUN Financial Holding’s Three Priority Areas for Virtual Assets

Corporate Cross-Border Payments and Trade Settlement: Targeting pain points for Taiwanese import/export companies in cross-border transactions, using stablecoins and blockchain technology to reduce capital costs and improve international trade settlement efficiency.

Blockchain Financial Services: Providing more real-time, transparent on-chain financial services, promoting disintermediation and automation of financial processes.

Real-World Asset Tokenization (RWA) and Web3 Integration: Digitizing real-world assets on the blockchain for trading, opening new business models for wealth management services.

E.SUN Financial Holding CTO Zhang Zhixing also disclosed that to strengthen blockchain applications and cloud deployment, the holding company has officially established a Technology Development Department responsible for promoting integrated shared databases and cloud platforms.

Current Status of Stablecoin Applications in Taiwan: Taiwanese Business Demand Accelerates Bank Entry

E.SUN Financial Holding’s strategic layout is not without purpose. According to statistics from the Taiwan External Trade Development Council (TAITRA) as of September 2025, 5.2% of companies are actively using stablecoins for transactions, with an additional 4.2% planning to adopt them. The total application rate nearing 10% indicates that stablecoins in Taiwan have moved beyond mere experimentation and are entering initial trade settlement applications, especially among overseas Taiwanese businesses.

Vice Chairperson Zhuang Xiuyuan of the Financial Supervisory Commission pointed out that Taiwanese businesses mainly receive funds in USD stablecoins from overseas. After accumulating a certain amount, they prefer to store and manage these funds in trusted Taiwanese financial institutions due to confidence in traditional finance. She is optimistic that once the VASP legislation is enacted, financial institutions will be able to offer seamless services between fiat currency and stablecoins, greatly improving cross-border operational efficiency for businesses.

Currently, several banks in Taiwan are quietly preparing to enter the market, planning to use virtual asset custody services as their first step.

Multiple Stakeholders in the Regulatory Framework: Central Bank, FSC, and Industry Perspectives

The regulatory framework for stablecoins is still under consensus-building. Xie Fengying, Director of the Central Bank’s Business Department, emphasized that stablecoins as a payment tool are gradually entering the real economy and should be regulated strictly according to the current Electronic Payment Institutions Act, following the principle of “same business, same risk, same regulation” to prevent regulatory arbitrage and unfair competition.

Industry organizations like the Taiwan Fintech Association advocate for a flexible legislative framework with a parent law and subdivided subsidiary laws, balancing fraud prevention and innovation. The differing positions indicate that negotiations over the detailed legislation of the VASP law still have a considerable distance to go.

Frequently Asked Questions

What is “three-track finance”? What is E.SUN Financial Holding’s definition?

“Three-track finance” is E.SUN Financial Holding’s conceptual framework for the future development of the financial industry. The first track is existing traditional physical financial services; the second is the highly developed digital finance; and the third is virtual asset finance centered on virtual assets, stablecoins, and tokenization. E.SUN believes that the parallel operation of these three tracks will become the main competitive landscape of the next financial industry.

What is the progress of Taiwan’s VASP legislation? How will it affect banks?

Taiwan’s Financial Supervisory Commission is actively pushing for the VASP (Virtual Asset Service Provider) legislation to be enacted by the end of 2026. Once passed, banks will be legally authorized to provide virtual asset custody, stablecoin issuance, and tokenization services, officially entering the virtual asset market currently dominated by pure crypto companies.

What is the first step for Taiwanese banks to enter stablecoins?

According to industry observations, several banks are initially entering the market through virtual asset custody services, providing compliant custody and exchange services for companies holding stablecoins. After the VASP legislation is enacted and the regulatory framework is established, more advanced services such as stablecoin issuance and cross-border settlement are expected to be further developed.