Taiwan’s Financial Supervisory Commission is preparing to launch a pilot program for institutional crypto custody. The regulatory body aims to collect applications in early 2025, and three private banks have expressed interest in participating.
This latest move signals efforts to promote institutional crypto adoption in the region.
Institutional Crypto Custody in Taiwan
According to local media reports, institutions participating in the trial will have to determine the type of virtual assets they will store—such as Bitcoin, Ethereum, or Dogecoin—and identify whether their services are aimed at platforms, professional investors such as institutions, high-profile companies. net worth entities, or the general public.
In a press conference held earlier this week, Hu Zehua, Director of FSC Comprehensive Planning, highlighted that although some security companies expressed interest, banks are better suited for this role due to their larger capital reserves and security considerations.
Zehua also stated that the FSC plans to hold a public consultation for 15 days before accepting applications for trial operation of virtual asset storage services.
During this period, the regulatory body will explain the proposed guidelines and invite external opinions, which will be used to make necessary revisions before the official launch. This process aims to allow the three private banks who have expressed interest in the trial to submit their applications once the review period is complete.
Taiwan’s Focus on Crypto
This latest development comes amid the Taiwanese government’s increasing focus on crypto. Recently, the FSC introduced a policy allowing professional investors to invest in foreign crypto exchange-traded funds (ETFs) through local brokers, thereby limiting access to only professional investors.
Additionally, the FSC updated its Anti-Money Laundering (AML) regulations last week in an effort to increase oversight of local virtual asset service providers (VASPs). Non-compliant entities will face severe penalties. The new AML measures, effective January 1, 2025, require all crypto companies to register with the government by September 2025.
As reported by CryptoPotato, those who fail to comply could face up to two years in prison or a fine of up to 5 million New Taiwan dollars (which is worth around $155,900). Although AML regulations have been in place since July 2021, even fully compliant companies must re-register with the agency to avoid penalties.
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