Originally published on: October 09, 2024
Taiwan is gearing up to revolutionize institutional cryptocurrency adoption by planning to launch a trial run of crypto storage services through local banks. The Financial Supervisory Commission (FSC) of Taiwan is laying the groundwork for an institutional trial of crypto custody services, as reported by local media on October 8.
According to Crypto PM, the FSC is expected to begin accepting applications in the first quarter of 2025, although three private banks in Taiwan have already shown interest in piloting a crypto custody service. Financial institutions keen on participating in the trial are required to disclose the types of assets they plan to store for their clients, including popular cryptocurrencies like Bitcoin, Ether, and Dogecoin.
Additionally, the institutions must outline their target users, whether they cater to professional or general investors, crypto asset platforms, or other market participants. Hu Zehua, director of the comprehensive planning division at the FSC, mentioned during a recent news conference that the regulatory body will release detailed information about the trial at least 15 days before accepting applications.
Taiwan’s move towards institutionalizing cryptocurrency custody services comes amidst the government’s increasing involvement in the crypto space. Recently, the FSC updated Taiwan’s Anti-Money Laundering regulations regarding cryptocurrency use, mandating all crypto companies to register with the government by September 2025 to avoid severe penalties.
In a bid to enhance investment options and boost financial market competitiveness, Taiwan’s FSC allowed professional investors to partake in foreign cryptocurrency exchange-traded funds. Despite not recognizing cryptocurrency as legal tender, Taiwan permits and regulates crypto investments, with the FSC actively working on establishing clear rules for the industry.
Amid the country’s proactive stance on crypto adoption, Taiwan has been tipped as the potential “next major crypto market” by the World Blockchain Summit. While Taiwan marches forward with crypto regulation and institutional adoption, its neighbor, mainland China, cracked down on cryptocurrency transactions in 2021.
From groundbreaking advancements in technology to progressive financial initiatives, Taiwan is undeniably at the forefront of innovation in Asia. With its foray into institutional crypto custody services, Taiwan is poised to showcase its commitment to embracing the digital economy.
Sources: Crypto PM, Radar
