Taiwan to Pilot Crypto Custody Services Through Local Banks in 2025

In a significant move towards institutional cryptocurrency adoption, Taiwan's regulators are set to pilot crypto storage services through local banks. The Financial Supervisory Commission (FSC) is preparing to launch this trial in early 2025, as reported by the Central News Agency on Oct. 8.

While the official application process is expected to begin in the first quarter of 2025, three private banks have already expressed interest in offering crypto custody services. These banks would be required to specify which digital assets, such as Bitcoin, Ethereum, or Dogecoin, they intend to store for their clients.

Additionally, the FSC mandates that banks provide information on the types of clients they will serve, whether professional investors, general users, or crypto asset platforms.

FSC Plans for a Transparent Application Process

Hu Zehua, the director of FSC’s comprehensive planning division, noted during a press conference that details regarding the trial will be released at least 15 days prior to the application start date. The FSC also plans to gather public feedback on the process and make adjustments where necessary.

As Taiwan’s government increases its focus on cryptocurrency regulation, the FSC updated its Anti-Money Laundering framework in October 2024, requiring all crypto businesses to register with the government by September 2025. Failure to comply could result in penalties, including fines or even imprisonment.

Taiwan’s Evolving Crypto Landscape

Taiwan is steadily emerging as a key player in the crypto space, especially in technology and finance. Although the country has not yet passed crypto-related legislation, it has actively regulated cryptocurrency investments. This positions Taiwan as a potential "major crypto market" in Asia.

Unlike mainland China, which banned cryptocurrency transactions in 2021, Taiwan is embracing the sector and is working towards creating a clear regulatory framework for the industry.