Taiwan is proposing strict rules for stablecoin issuers, Bhutan has authorized a new central bank to hold digital assets, and France has rejected two proposed crypto exit taxes. Other tax and reporting measures in France remain unresolved.
- Taiwan: Draft rules would restrict who can issue stablecoins and require reserves equal to their full value.
- Bhutan: Gelephu’s central bank can invest in crypto, but it is not required to buy any.
- France: Two exit-tax proposals failed, while other measures remain under debate.
Taiwan sets a high bar for stablecoin issuers
Taiwan’s Financial Supervisory Commission (FSC) announced three draft regulations on November 3. One covers stablecoin issuance, while the other two address anti-money laundering and countering the financing of terrorism (AML/CFT). The proposals would support implementation of Taiwan’s Virtual Asset Services Act, which the Legislative Yuan passed in June 2026.
The FSC said it drew on “international regulatory trends, reports issued by the Financial Action Task Force (FATF), and the practical situation in Taiwan.” The proposals would expand oversight beyond a framework focused mainly on AML registration for virtual asset service providers, or VASPs, and introduce specific requirements for stablecoin issuers.
Eligible issuers would include banks, financial holding companies, joint-stock companies invested in by banks, and other institutions designated by the regulator. Non-bank issuers would need at least NT$300 million (US$9.13 million) in paid-in capital, the funds contributed by owners or shareholders. They could only issue and redeem stablecoins.
Each stablecoin would have to be pegged 1:1 to the New Taiwan Dollar or a single foreign currency. Issuers would need reserves equal in value to the tokens they issue. The draft also calls for customer identity checks, regular audits, internal controls, cybersecurity and operational-continuity measures, and financial disclosures to regulators.
Reserves equal to the value of issued tokens do not, by themselves, settle which assets can count, whether reserves must be segregated, or how quickly holders could redeem their tokens. The proposals set out oversight and backing requirements, but those details will matter when the final rules are issued.
The FSC is seeking feedback for 40 days from its November 3 announcement. It plans to gather comments and coordinate the regulations with implementation of the Act, which is expected in the first quarter of 2027. The proposals could still change, and no precise effective date for the final stablecoin rules has been set.
Strict eligibility and reserve rules could reduce the risk of issuers promising more than they can deliver. They could also limit competition and give established financial institutions an advantage over smaller firms. Whether the safeguards improve stability without unnecessarily narrowing the market will depend on the final requirements.
Bhutan authorizes Gelephu’s central bank to hold digital assets
King Jigme Khesar Namgyel Wangchuck signed a Royal Decree on November 1, giving Gelephu Mindfulness City’s financial regulator a central-banking mandate. The institution will be called the Gelephu Central Bank (GCB).
The decree authorizes the GCB to invest in digital assets and cryptocurrencies alongside conventional reserves. It does not require the bank to buy Bitcoin, Ethereum, BNB, or any other token. Permission to invest is not a decision to do so.
The decree gives the GCB responsibility for monetary policy, foreign-reserve management, financial stability, emergency liquidity, payment and settlement systems, central bank securities, and the development of money and capital markets. Licensing and supervision previously handled by the Gelephu Financial Services Office (GFSO) will continue under a new Financial Supervision division.
Gelephu Mindfulness City (GMC) is a planned economic zone in Bhutan’s southern plains, on the border with India’s Assam state. It covers around 4, 000 square kilometers, roughly a tenth of Bhutan. King Wangchuck announced the project in December 2023 and established it by Royal Charter in 2024, creating a distinct legal and regulatory framework. The Charter also allows for a possible GMC currency, including a digital version, subject to the king’s approval.
Bhutan’s national digital-asset activity and GMC’s plans do not tell us what the GCB’s future portfolio will look like. In 2025, GMC said it would hold Bitcoin, Ethereum, and BNB in its reserves. In December 2025, Bhutan said it would commit up to 10, 000 BTC, worth about $1 billion at the time, to develop the city. Neither announcement specifies what the GCB itself will buy.
It remains unclear how the GCB would safeguard, value, and disclose any digital-asset holdings. The institution is still building its capacity. It is hiring for more than 50 roles in Bhutan and abroad, including positions in virtual-asset supervision and custody, AML/CFT, reserves and foreign exchange, technology risk, and macroeconomics.
GCB Managing Director David Peters called the decree “an important step forward for Gelephu Central Bank and the development of GMC’s financial ecosystem.” He added: “Our priority is to build an institution that combines strong regulatory standards, modern financial infrastructure and an openness to responsible innovation.” The mandate sets an ambitious direction. Its credibility will depend on the controls and operating practices that follow.
France rejects two proposed crypto exit taxes
France’s National Assembly rejected two proposals on October 30 that would have taxed unrealized gains on digital assets when holders left the country. Unrealized gains are increases in value that exist on paper because an asset has not been sold or otherwise disposed of.
The first proposal would have added digital assets to France’s existing exit-tax regime. It failed by 55 votes to 27. The second would have applied to digital-asset holdings above €800, 000 for people who had been French tax residents for at least six of the previous 10 years. It was rejected by 60 votes to 31.
Other measures are still under consideration. One would require people to declare self-custodied crypto worth €100, 000 or more at the end of each year. Self-custodied crypto is held directly by an individual rather than through an exchange or another third-party custodian.
Crypto holders and executives have criticized the proposed register, warning that identifying wealthy holders could expose them to theft or extortion. Critics have cited reported crypto-related kidnappings in France as a reason for concern. That is an argument about privacy and personal safety, not evidence that a reporting rule would cause attacks.
A separate proposal would exempt digital-asset payments for goods and services from tax up to €1, 000 a year. In October, the National Assembly also approved a proposal to tax gains when digital assets are swapped into fiat-pegged stablecoins. That measure is still a proposal, not law. The current tax treatment described in the debate treats those conversions as tax-free.
The budget process could still change the outcome. The National Assembly postponed its vote on the budget’s revenue section for a second time, with 758 amendments still to consider. It must complete its first reading by November 17. If lawmakers reject the section, the government’s original draft would go to the Senate without the Assembly’s amendments. The remaining crypto measures are still up in the air.
Key questions and answers
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Who could issue stablecoins under Taiwan’s proposal?
Banks, financial holding companies, bank-invested joint-stock companies, and other institutions designated by the regulator. Non-bank issuers would need at least NT$300 million in paid-in capital and could only issue and redeem stablecoins.
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What backing would Taiwan require?
Each stablecoin would need a 1:1 peg to the New Taiwan Dollar or a single foreign currency, with reserves equal in value to the tokens issued. The draft also sets requirements for identity checks, audits, internal controls, cybersecurity, continuity, and disclosures.
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Does Bhutan’s central bank have to buy cryptocurrency?
No. The GCB is authorized to invest in digital assets and cryptocurrencies alongside conventional reserves, but the decree does not require it to buy any specific asset.
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Are France’s proposed crypto exit taxes law?
No. The National Assembly rejected both exit-tax proposals. Other tax and reporting measures are still under consideration as part of the budget process.
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When could Taiwan’s rules take effect?
The Virtual Asset Services Act is expected to be implemented in the first quarter of 2027. The stablecoin proposals are still open to consultation, and the final requirements and effective date have not been set.
