11-06-2026 
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TL;DR: Asian jurisdictions are taking sharply different paths on digital assets, as Taiwan drafts strict rules that would limit stablecoin issuance to bank-backed firms, while Bhutan gives Gelephu Mindfulness City a new central bank with the power to hold crypto. In Europe, meanwhile, French lawmakers remain divided over how hard to tax digital asset holders, with the result being delay rather than decision.
Key Takeaways:
- Taiwan’s proposed rules would limit stablecoin issuance to bank-linked entities, requiring full reserve backing, identity verification, audits, and a minimum NT$300 million capital for non-bank issuers.
- Bhutan’s Gelephu Mindfulness City establishes its own central bank, authorized to hold digital assets and cryptocurrencies as part of its reserves alongside traditional assets.
- French lawmakers reject proposed exit taxes on unrealized crypto gains but continue debating self-custody reporting requirements and taxes on stablecoin conversions, delaying broader budget decisions.
Taiwan restricts stablecoin issuance
Taiwan’s Financial Supervisory Commission (FSC) has drafted rules that would restrict stablecoin issuance to banks, companies invested in by banks or financial holding companies, and other institutions designated by the regulator. Stablecoins would have to be pegged 1:1 to a fiat currency, with issuers required to hold reserves equal in value to the stablecoins they issue and to verify customers’ identities before processing transactions.
The proposals, announced by the FSC on November 3, were released alongside two further pieces of regulation on anti-money laundering (AML) and countering the financing of terrorism (CFT), introduced to facilitate the implementation of Taiwan’s Virtual Asset Services Act, which the Legislative Yuan passed in June 2026.
The FSC said the three pieces of regulation were drafted after considering “international regulatory trends, reports issued by the Financial Action Task Force (FATF), and the practical situation in Taiwan.”
The proposed stablecoin rules, titled “Regulations Governing the Issuance and Management of Stablecoins,” mark a significant shift from Taiwan’s previously limited oversight of stablecoins.
Up to now, Taiwan’s regulatory framework has focused primarily on AML registration for virtual asset service providers (VASPs), without a dedicated licensing regime governing stablecoin issuance or restricting who could issue them. In contrast, the FSC’s draft rules would bring stablecoin issuance under much closer regulatory and financial-sector supervision.
Under the proposed rules, stablecoin issuance would be restricted to banks, financial holding companies, and joint-stock companies invested in by banks, effectively limiting the market to entities with established ties to the financial sector, and non-bank issuers would also need minimum paid-in capital of NT$300 million (US$9.13 million) and be restricted to stablecoin issuance and redemption. In addition, stablecoins would have to be pegged 1:1 to the New Taiwan Dollar (NTD) or a single foreign currency and fully backed by reserves, while issuers would face requirements covering customer identity checks, regular audits, internal controls, cybersecurity, operational continuity, and financial disclosures to regulators.
The FSC is seeking feedback on the draft, with interested parties given 40 days from the announcement date to respond. In the meantime, the regulator said it would continue to communicate with various stakeholders and, after collecting any comments, would release the draft in conjunction with the implementation date of the Virtual Asset Services Act, which is expected in the first quarter of 2027.
While Taiwan seeks to tighten controls on stablecoins, Bhutan is moving further down the path of embracing digital assets.
Gelephu Mindfulness City gets central bank with power to hold crypto
Bhutan’s King Jigme Khesar Namgyel Wangchuck signed a Royal Decree on November 1, giving Gelephu Mindfulness City’s (GMC’s) financial regulator, the Gelephu Financial Services Office (GFSO), a comprehensive central banking mandate and allowing the new entity, to be called Gelephu Central Bank (GCB), to invest in digital assets and cryptocurrencies alongside conventional reserves.
GMC is a new economic zone being built in Bhutan’s southern plains, on the border with India’s Assam state, covering around 4,000 square kilometers, roughly a tenth of the country. The king announced it in December 2023 and set it up by Royal Charter in 2024. While Gelephu is still part of Bhutan, it is a special administrative region with its own laws and regulators, loosely comparable to Hong Kong’s status within China.
Under the king’s new mandate, the new central bank will operate autonomously and conduct monetary policy, manage foreign reserves, oversee financial stability, provide emergency liquidity, run payment and settlement systems, issue central bank securities, and help develop money and capital markets, while the former GFSO’s licensing and supervision work will continue under a new Financial Supervision division.
Crucially for the digital asset sector, the GCB will be allowed to invest in digital assets and cryptocurrencies alongside conventional reserves, and the decree does not require it to buy any particular token. The city’s Charter also paves the way for a GMC currency, including a digital version, subject to the king’s approval.
“This marks an important step forward for Gelephu Central Bank and the development of GMC’s financial ecosystem,” said David Peters, Managing Director of Gelephu Central Bank. “Our priority is to build an institution that combines strong regulatory standards, modern financial infrastructure and an openness to responsible innovation.”
The GCB is hiring for more than 50 roles in Bhutan and abroad, covering virtual asset supervision and custody, AML and CFT, reserves and foreign exchange, technology risk, and macroeconomics.
The king’s GMC decree is in keeping with Bhutan’s increasingly close relationship with digital assets in recent years. It was among the first states to mine bitcoin, using surplus hydropower, while in 2025, GMC said it would hold Bitcoin, Ethereum and BNB in its reserves, and in December 2025 Bhutan pledged up to 10,000 BTC (worth about $1 billion at the time) to develop the city.
While Asian states are making progress on digital asset regulation, over in Europe, French lawmakers are struggling to get a consensus on proposed crypto tax rules.
France delays budget vote as lawmakers reject crypto tax
French digital asset holders who move abroad will not face a tax on unrealized gains, for now. On October 30, the National Assembly rejected two proposals that would have charged digital asset investors on paper profits when they left the country. The vote removed one of the most closely watched threats to digital asset holders in France’s 2027 budget, but several other crypto measures are still under debate.
The first proposal would have added digital assets to France’s existing exit-tax regime, and it failed by 55 votes to 27. The second was narrower, targeting digital asset holdings above €800,000 ($900,004) for people who had been tax-resident in France for at least six of the previous 10 years; it was defeated 60 to 31.
Still on the table is a plan requiring people to declare self-custodied crypto worth €100,000 ($112,500) or more at year-end. The plan has drawn criticism from crypto holders and executives, who warn that a register of wealthy holders could expose them to theft and extortion, given France’s spate of crypto-related kidnappings.
A separate measure would exempt digital asset payments for goods and services from tax up to €1,000 ($1,125) a year. In October, lawmakers also approved a proposal to tax gains when digital assets are swapped into fiat-pegged stablecoins, which are currently tax-free, though the measure is not yet law.
Whether any of this survives is uncertain. The Assembly has postponed its vote on the budget’s revenue section for a second time, with 758 amendments still to go through, and must finish its first reading by November 17. If members of parliament reject the section, the government’s original draft goes to the Senate stripped of its amendments.
FAQs:
Who would be allowed to issue stablecoins under Taiwan’s draft rules?
Issuance would be limited to banks, financial holding companies, and joint-stock companies invested in by banks, plus other institutions the regulator designates. Non-bank issuers would need at least NT$300 million (US$9.13 million) in paid-in capital and could only do stablecoin issuance and redemption.
What backing and compliance requirements would Taiwanese issuers face?
Stablecoins would have to be pegged 1:1 to the New Taiwan Dollar or a single foreign currency and fully backed by reserves of equal value. Issuers would also need to verify customers’ identities, run regular audits, maintain internal controls and cybersecurity, ensure operational continuity, and give financial disclosures to regulators.
When could Taiwan’s stablecoin rules take effect?
The Financial Supervisory Commission is taking feedback for 40 days from its November 3 announcement. It will then release the final draft alongside the Virtual Asset Services Act’s implementation, expected in the first quarter of 2027.
What powers does Bhutan’s new Gelephu Central Bank have?
Under a Royal Decree signed on November 1, the bank can conduct monetary policy, manage foreign reserves, oversee financial stability, provide emergency liquidity, and run payment and settlement systems. It may also invest in digital assets and cryptocurrencies alongside conventional reserves, though it isn’t required to buy any particular token.
What happened to France’s proposed crypto exit tax, and what’s still being debated?
On October 30, the National Assembly rejected two proposals to tax unrealized crypto gains when holders leave France. Still under debate are a requirement to declare self-custodied crypto worth €100,000 ($112,38) or more and a €1,000 ($1,123) annual tax exemption for crypto payments. The Assembly has also postponed its budget vote twice and must finish its first reading by November 17.
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