Taiwan's FSC to Launch Institutional Trial for Crypto Custody Services
Taiwan’s Financial Supervisory Commission (FSC) is gearing up for a trial run of Crypto custody services in collaboration with local banks. The FSC is expected to kick off the application process for this trial in the first quarter of 2025. This move was reported by the Central news Agency on October 8.
Three private banks have already shown interest in participating in this experimental program, showcasing a growing curiosity within the financial sector for venturing into the realm of Digital Assets.
Banks Need to Clarify Cryptos They Plan to Manage
For financial institutions eyeing participation in the trial, the FSC requires them to specify the types of assets they intend to manage. This includes popular cryptocurrencies like Bitcoin, Ethereum, and Dogecoin. Furthermore, banks must outline their target clientele, such as professional or general investors, Crypto Platforms, or other institutional entities. By detailing these aspects, banks ensure a precise understanding of the Market segment they aim to cater to.
Hu Zehua, the director of FSC’s comprehensive planning division, highlighted that detailed information about the trial procedure will be made public at least 15 days before the commencement of the application process. The FSC also plans to gather feedback from the public and incorporate suggestions to enhance the trial process.
Taiwan to Trial Crypto Custody Services in 2025 Taiwan’s Financial Supervisory Commission will start collecting applications for crypto custody services in Q1 2025, with interest from three local banks. - mracrypto (@MRA_crypto) October 9, 2024
Following the release of updated Anti-Money Laundering (AML) regulations by Taiwan’s FSC, the new rules are aimed at strengthening oversight over local Virtual asset service providers (VASPs). This initiative is part of a broader strategy to fortify the regulatory framework and enhance the safety and transparency of the crypto market. In a shift towards stricter enforcement, Taiwan authorities have announced plans to penalize Cryptocurrency firms that fail to comply with AML laws, underscoring the government's commitment to combating fraud and enhancing regulatory compliance in the crypto industry.
Taiwan Pushes for Crypto Regulations
Taiwan is actively working towards establishing itself as a prominent player in the global Cryptocurrency landscape by advocating for robust crypto regulations. In an effort to bring offshore cryptocurrency Exchanges operating within its jurisdiction under regulatory purview, the country has outlined stringent measures. Unless these exchanges obtain the requisite registration, they face the risk of operational restrictions in Taiwan.
Last year, the FSC in Taiwan drafted ten guiding principles for VASPs to create self-regulatory guidelines. Expected to be officially released by the end of this month, these principles focus on enhancing information disclosure, setting standards for virtual asset listing and delisting, and ensuring the secure custody of both company and customer assets. Additionally, the FSC aims to clamp down on unauthorized business solicitation by foreign crypto entities.
These initiatives signal Taiwan’s proactive stance on crypto Regulation, positioning the country as a key player in the evolving Digital asset ecosystem. With the upcoming trial for crypto custody services and a strong push for regulatory clarity, Taiwan is poised to make significant strides in fostering a conducive environment for crypto Innovation and compliance.
