Taipei, Sunday, October 13, 2024-Taiwan Financial Supervisory Commission (FSC) is set to launch a pilot program for institutional cryptocurrency custody services in early 2025. The initiative, aimed at promoting institutional adoption of crypto, has already attracted interest from three private banks, which are expected to participate in the trial.
As reported by local media, participating institutions will specify which virtual assets—such as Bitcoin, Ethereum, or Dogecoin—they intend to custody. They will also define whether their services are tailored for crypto platforms, professional investors, high-net-worth individuals, or the general public. FSC Director Hu Zehua emphasized that banks are better suited for these services due to their capital reserves and security capabilities.
A 15-day public consultation period will be held before applications are accepted, allowing external feedback on the proposed guidelines.
This move aligns with Taiwan’s broader crypto initiatives. Recently, the FSC allowed professional investors to access foreign crypto ETFs through local brokers. Additionally, the agency tightened anti-money laundering (AML) regulations, requiring all crypto firms to register with the government by September 2025, with non-compliant firms facing penalties of up to $155,900 or two years in prison.
