Taiwan Set to Launch Crypto Custody Trial with Banks

Taiwan FSC Prepares for Virtual Asset Crypto Custody Trial

The Financial Supervisory Commission (FSC) of Taiwan intends to initiate a crypto custody service trial for digital assets.

Trial Program Details:

• Applications to participate will open in early 2025.
• Three domestic banks will spearhead the pilot program starting in the first quarter of 2025.
• Participating banks will offer custody solutions for cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
• The FSC has established stringent guidelines for institutions, requiring them to define supported assets and target user groups.

Regulatory Oversight:

• FSC Global Planning Division Director Hu Zehua announced plans to release project trial details at least 15 days prior to application acceptance.
• The FSC will gather public feedback on the proposed trial.

Additional Developments:

• The FSC has also authorized institutional investors to trade foreign crypto exchange-traded funds (ETFs).
• The commission aims to formulate a crypto law proposal by December 31st, with a formal proposal targeted for June 2025.

Security Measures:

• The FSC has emphasized the importance of custody business security and money laundering prevention.
• Financial institutions are required to freeze virtual assets linked to illegal funds to mitigate risk.