Taiwan’s Financial Supervisory Commission (FSC) plans to launch a trial of crypto asset custody services at local banks in the first quarter of 2025. This initiative aims to manage digital assets securely.
Interest in Trial Program
So far, three private banks have expressed interest in the program. FSC announced that it will evaluate applications within a 15-day period before accepting them.
Companies that will apply for the trial period will have to disclose the type of crypto assets they will store and their target customer base. The target audience can be individual investors, professional investors or crypto exchange platforms.
Cyber Security and Money Laundering Measures
FSC pays special attention to the cyber security practices of companies providing crypto custody services. It also demands that they combat money laundering by blocking digital assets originating from illicit funds.
“We pay special attention to companies’ cybersecurity practices and work to block crypto assets from illicit funds.” -Hu Zehua, FSC Comprehensive Planning Department Manager.
Last week, the FSC changed its policies to require all crypto-based companies to register with the regulator by September 2025. Otherwise, they face up to two years in prison or a $156,000 fine. In late September, the FSC announced that they were also allowing professional investors to invest in foreign crypto exchange-traded funds (ETFs).
These regulations aim to make Taiwan’s digital asset market safer and more regulated.
If the trial process is successful, it is expected that crypto assets can be used safely by a wider audience. The services offered by banks in this area can increase the adoption of digital assets.
These steps aim to support Taiwan’s progress in financial technologies while ensuring that investors can operate in a safe environment.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
