Taiwan is taking significant steps toward integrating cryptocurrency into its financial system, as the country’s Financial Supervisory Commission (FSC) plans to trial crypto custody services through local banks in 2025. This move is part of Taiwan’s broader strategy to encourage institutional adoption of digital assets.
FSC to Launch Crypto Custody Trial in Early 2025
According to an October 8 report from the Central News Agency, the FSC will begin accepting applications from institutions interested in piloting Bitcoin and other crypto storage services in the first quarter of 2025. The commission aims to test and establish regulatory standards that will guide financial institutions in securely managing digital assets.
Three private banks in Taiwan have already shown interest in participating in the trial. The FSC has outlined that institutions must specify which assets they plan to manage, such as Bitcoin, Ether, and Dogecoin, along with the types of clients they aim to serve—ranging from professional and retail investors to crypto asset platforms.
Public Consultation and Regulatory Preparation
FSC’s Director of Comprehensive Planning, Hu Zehua, announced that the commission would provide details on the pilot program at least 15 days before accepting applications. This period will also allow for public feedback, giving stakeholders an opportunity to contribute to and refine the regulatory framework before the trial’s launch.
Taiwan’s Expanding Crypto Regulations and Market Involvement
Taiwan’s latest move to explore crypto custody services aligns with its increasing involvement in the cryptocurrency sector. On October 2, the FSC updated the country’s Anti-Money Laundering (AML) framework specifically for cryptocurrencies like Bitcoin. The update mandates all crypto firms operating in Taiwan to register with authorities by September 2025. Companies failing to comply could face severe penalties, including up to two years in prison or fines reaching $156,000.
Additionally, in September, the FSC authorized professional investors to access foreign cryptocurrency exchange-traded funds (ETFs). This development is part of Taiwan’s efforts to diversify investment opportunities and enhance the competitiveness of its financial markets.
Taiwan’s Growing Crypto Market Potential
These regulatory advancements suggest Taiwan is positioning itself as a prominent player in the global crypto market. By establishing a regulated environment for crypto custody and investment, Taiwan aims to attract institutional players while ensuring investor protection and compliance with AML standards.
