The Financial Supervisory Commission (FSC) of Taiwan is set to initiate a pilot program for cryptocurrency custody, as reported on October 8. Applications for this trial are expected to be accepted starting in the first quarter of 2025, with three private banks already expressing interest in entering the crypto custody market.
Participating institutions will need to specify the types of assets they will manage for clients, including popular cryptocurrencies like Bitcoin, Ethereum, and Dogecoin. They must also indicate whether their services will be aimed at professional investors, general clients, or specific crypto asset platforms.
At a recent press conference, Hu Zehua, head of the FSC’s comprehensive planning division, announced that guidelines for the pilot will be released at least two weeks before the application period. Additionally, the FSC plans to gather public feedback on the proposed program to ensure it aligns with community needs.
This initiative marks a significant step in Taiwan's increasing involvement with the cryptocurrency sector. The FSC recently updated its Anti-Money Laundering policies related to digital assets, requiring crypto firms to register by September 2025 to avoid penalties. In an effort to broaden investment options, the commission has also permitted professional investors to access foreign cryptocurrency exchange-traded funds, enhancing Taiwan’s financial competitiveness.
While Taiwan does not recognize cryptocurrency as legal tender, it allows regulated investments in the sector and is actively developing a framework for this emerging industry. In contrast to mainland China, which has enacted strict restrictions on crypto transactions since 2021, Taiwan is being positioned as a potential cryptocurrency hub in Asia.
October 2024, Cryptoniteuae