Taiwan plans to launch a trial for crypto custody services via local banks in 2025.
According to a report by the Central News Agency on October 8, Taiwan's Financial Supervisory Commission (FSC) is set to launch an institutional trial for crypto storage services.
The FSC plans to start accepting applications in the first quarter of 2025, with three private Taiwanese banks already expressing interest in piloting crypto custody services.
The FSC’s guidelines mention that financial institutions applying for the trial must specify which cryptocurrencies they intend to store for clients, such as Bitcoin (BTC), Ether (ETH), or Dogecoin (DOGE). The institutions are also required to indicate their target audience, whether professional or general investors, cryptocurrency platforms, or other entities.
Hu Zehua, director of the FSC’s comprehensive planning division, stated during a press conference that the regulatory body plans to release detailed information about the trial at least 15 days before applications are accepted. Public feedback will be gathered, and the trial process will be adjusted accordingly.
This move reflects Taiwan's increasing involvement in the cryptocurrency space. On October 2, the FSC updated the nation’s Anti-Money Laundering regulations concerning cryptocurrencies like Bitcoin, requiring all crypto firms to register with the government by September 2025. Failure to do so could result in severe penalties, including up to two years in prison or fines of $156,000.
In September, the FSC also allowed professional investors to engage with foreign cryptocurrency exchange-traded funds (ETFs), aiming to boost investment options and enhance the competitiveness of Taiwan's financial markets.
Legal experts from Regulated United Europe note that while Taiwan does not officially recognize cryptocurrency as legal tender, the government permits and regulates crypto investments, with the FSC actively working to establish clearer rules for the growing industry.
The World Blockchain Summit has highlighted Taiwan as a potential "next major crypto market" in Asia, despite the absence of formal crypto-related legislation. While Taiwan is advancing its crypto landscape, neighboring mainland China imposed a significant ban on cryptocurrency transactions in 2021.
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