Taiwan’s FSC to Introduce Crypto Custody Trial in 2025
Taiwan’s Financial Supervisory Commission plans to implement an institutional testing for crypto custody services using the services of local banks as it ups oversight and security in the nation’s cryptocurrency space.
The FSC, according to the Central News Agency report, will start accepting applications for the said trial in the first quarter of 2025. Already, the regulator said interest in this pilot has been showered by no less than three private banks.
Banks Must Specify Crypto Assets for Custody
In addition, banks will be required to clearly define the type of assets they might plan to handle-such as Bitcoin, Ether, or Dogecoin, among others. There should also be a statement on the type of clients they will cater to, be it professional investors, crypto platforms, or institutional players. This will allow banks to offer specialized services to distinct market segments.
Hu Zehua, director of the FSC, said that “detailed information” about the trial will be published no less than 15 days before accepting applications, while public feedback will also be accepted as one of the fundamentals of refining the program.
New AML Regulations Ramp Up Crypto Oversight
The trial of the FSC follows recent amendments to Taiwan’s Anti-Money Laundering laws, which were aimed at tightening oversight of local Virtual Asset Service Providers. In early 2024, the Taiwanese Ministry of Justice proposed amendments to the AML laws that contain grave penalties for non-compliant firms. This is part of Taiwan’s broader efforts at mitigating fraud and money-laundering risks in the Virtual Asset sector.
Taiwan’s Push for More Significant Crypto Regulations
Taiwan has been active in implementing order into how the cryptocurrency market functions. In addition to the upcoming trial, the FSC has prepared ten guiding principles for VASPs to touch on three salient features: transparency, asset management, and crypto platform operations. The new guidelines, which will be out by the end of the year, will ensure greater accountability from virtual asset platforms and a clearer division between corporate and customer assets.
While working on the said steps, Taiwan tries to position itself as a global center for cryptocurrency, while proclaiming that it will make sure regulations are followed and consumers protected.
