Local banks in Taiwan can apply with the FSC as soon as the first quarter of 2025 to start their crypto custody trials.
Taiwan plans to institute crypto custody trials by partnering with local banks to boost its local institutional adoption of the asset class. The efforts will be spearheaded by the jurisdiction’s financial regulator, the Financial Supervisory Commission (FSC). Taiwanese media publication Central News Agency reported on the plans on October 8.
The FSC will begin collecting applications from local banks that want to offer custody services in the first quarter of 2025. Three banks have already expressed their interest in indulging in the pilot custody program.
As the banks apply for the opportunity, they must state the type of crypto assets they would custody. Central News Agency mentioned three cryptocurrencies specifically—bitcoin, Ether, and Dogecoin but that list is not exhaustive. Beyond reporting the assets the services will revolve around, the banks must also let the FSC know the kind of investors they would work with—general, institutional, or both.
Hu Zehua, the regulator’s director for the comprehensive planning division, stated at a news conference earlier this week that the FSC will release detailed information on the trials 15 days before it starts accepting applications. Furthermore, the agency will also be open to public feedback to revise the pilot’s process.
Taiwan Can Transform Into Asia’s Next Crypto Hub
Taiwan has been making moves to legitimize its crypto ecosystem. It recently updated its anti-money laundering (AML) regulations surrounding digital assets. According to the latest update, crypto firms in the region must register with the FSC by September 2025. Non-compliance can result in severe legal action, including jail time of up to two years for those operating the businesses and fines of $156,000.
While those efforts prevent criminal activity through the asset class, Taiwan began allowing institutions to invest in foreign crypto exchange traded funds (ETFs). The decision came as a way to boost the jurisdiction’s financial markets, legitimizing crypto assets within its boundaries in the process.
Other actions to transform its crypto ecosystem came with Taiwan Mobile, a telecom operator serving over 10 million clients, receiving its virtual asset license to offer exchange services, among numerous other possibilities.
Such moves place Taiwan as a budding crypto market with the potential to become one of Asia’s leading digital asset hubs. The FSC has taken the onus of implementing regulations around the industry in recent times, making it easy and clear for crypto businesses to operate.
