Taiwan is taking significant steps toward greater institutional adoption of cryptocurrencies, with regulators planning to pilot crypto custody services through local banks.
According to a report by the local media outlet, Central News Agency, the country’s top financial regulator, the Financial Supervisory Commission (FSC), is preparing to launch a trial program allowing banks to offer secure storage solutions for digital assets in the first quarter of 2025 and will soon begin to accept applications for the program.
As outlined in the report, financial institutions interested in participating must clearly specify the types of assets they intend to store for clients, including popular cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE). Additionally, applicants must identify the target users for their services, whether they be professional or general investors, crypto-asset platforms, or other categories.
Three local private banks have already expressed interest in the program.
Hu Zehua, director of FSC’s Comprehensive Planning Division, reportedly noted that the regulator intends to release detailed information about the crypto custody trial program at least 15 days prior to accepting applications. The FSC will also gather public feedback on the proposed trial and make necessary adjustments based on that input.
This initiative comes as the Taiwanese government deepens its engagement with the cryptocurrency sector. The FSC recently introduced new Anti-Money Laundering (AML) regulations for virtual asset service providers (VASPs), which are set to be fully implemented by 2025.
RELATED: Taiwan’s FSC Allows Investors to Expand Portfolios with Foreign Crypto ETFs
Announced on October 2, these updated regulations will replace the current AML framework and require all crypto firms to register with the government by September 2025. Non-compliance could result in penalties, including fines of up to NT$5 million (approximately $155,900) or even a two-year prison sentence. Companies currently compliant with existing regulations are also required to adhere to the new standards, effective January 1, 2025.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
