Taiwan Advances in Crypto Custody Services via Local Banks

Taiwan Takes Steps Towards Institutional Cryptocurrency Adoption

In a significant move towards enhancing institutional cryptocurrency adoption, Taiwan is set to launch a trial project that will enable local banks to provide crypto custody services. This initiative, reported by Cointelegraph and the Central News Agency, is a notable development in the crypto landscape of Taiwan.

Background on the Initiative

The Financial Supervisory Commission (FSC) of Taiwan is orchestrating this institutional trial, slated to begin with application collections in the first quarter of 2025. The introduction of this trial aligns with the global trend of increasing institutional interest in cryptocurrencies.

Participation and Requirements

As part of this initiative, three private banks in Taiwan have already expressed interest in participating in the crypto custody pilot program. The FSC has laid out specific requirements that financial institutions must fulfill when applying for the trial. These include:

• Identification of the types of digital assets they plan to custody, including popular cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE).
• Clarification on the target users, which can range from professional investors to general users or crypto asset platforms.

Next Steps for the FSC

Hu Zehua, the director of the comprehensive planning division at FSC, announced during a press conference that detailed information regarding the trial will be publicly disclosed at least 15 days before the application process begins. This transparency is aimed at gathering public feedback, which will be integral in refining the overall process.

What This Means for Crypto in Taiwan

This pilot program represents a critical step towards establishing a structured framework for crypto assets in Taiwan, facilitating greater confidence among institutional investors. By enabling banks to offer custody services, Taiwan is not only positioning itself as a competitive player in the crypto space but also ensuring regulatory oversight and security for digital asset investments.

Conclusion

As Taiwan prepares to embark on this crypto custody trial, the developments will likely influence the broader adoption of cryptocurrency within institutional frameworks. Stakeholders will be eagerly awaiting further updates as more information becomes available regarding the framework and guidelines of this pioneering initiative in the region.

Stay tuned for updates on this developing story as the FSC continues to move forward with their plans.