Taiwan’s Financial Supervisory Commission (FSC) is set to launch a trial for crypto custody services in collaboration with local banks. The FSC will begin accepting applications for the trial in the first quarter of 2025. Three private banks have already shown interest in participating in the pilot program. To be eligible for the trial, banks need to specify the types of assets they plan to manage, including popular cryptocurrencies like Bitcoin, Ether, and Dogecoin. They must also outline their target client base, such as professional or general investors, crypto platforms, or other institutional players. This ensures that banks have a clear understanding of their market segment. Hu Zehua, FSC’s director of the comprehensive planning division, stated that details about the trial will be made public at least 15 days before the application process begins. The FSC also plans to gather public feedback and incorporate suggestions to improve the trial process. This initiative follows the introduction of updated Anti-Money Laundering (AML) regulations by Taiwan’s FSC. The new rules aim to enhance oversight of local virtual asset service providers (VASPs) and establish a safer and more transparent crypto market. In May, Taiwan authorities announced their intention to penalize cryptocurrency firms that fail to comply with the country’s AML laws. To support its goal of becoming a global cryptocurrency hub, Taiwan has been actively pushing for crypto regulations. The country plans to impose restrictions on offshore cryptocurrency exchanges operating within its jurisdiction unless they obtain the required registration. The FSC has also drafted ten guiding principles for VASPs to establish self-regulatory rules, which are expected to be officially released soon. These guidelines will focus on aspects such as information disclosure, virtual asset listing and delisting review standards, and the separation and custody of companies’ and customers’ assets. The FSC aims to strictly prohibit illegal business solicitation by foreign crypto firms.
