Taiwan is looking to advance institutional cryptocurrency adoption as local regulators aim to pilot crypto storage services through local banks.
The Financial Supervisory Commission (FSC) of Taiwan is preparing to launch an institutional trial of crypto custody services, local media Central News Agency reported on Oct. 8.
Source: Crypto PM
While the FSC reportedly expects to start collecting applications in the first quarter of 2025, three private banks in Taiwan have already expressed interest in piloting a crypto custody business.
FSC mentions Bitcoin, Ether and Dogecoin
Citing explanatory information by the FSC, the report said that financial institutions applying for a trial run of crypto custody would have to specify the type of assets they store for clients, such as Bitcoin (BTC), Ether (ETH) or Dogecoin (DOGE).
Additionally, the institutions must include information about the type of users they target, whether they are professional or general investors, crypto asset platforms or others.
FSC’s director of the comprehensive planning division, Hu Zehua, reportedly mentioned at a news conference on Monday that the authority expects to release information on the trial at least 15 days before accepting applications. The FSC will also collect public feedback on the proposed trial and revise the process accordingly.
Cointelegraph approached the FSC for a comment regarding the trials but had not received a response by the time of publication.
Is Taiwan the next major crypto market?
The report comes amid the Taiwanese government’s growing involvement in cryptocurrency.
On Oct. 2, the FSC updated Taiwan’s Anti-Money Laundering framework regarding the use of cryptocurrencies like Bitcoin. In the update, the authority required all crypto companies to register with the government by September 2025 or face harsh penalties, such as prison terms of up to two years or $156,000 in fines.
Related: National Bank of Bahrain rolls out its first Bitcoin investment fund
Taiwan’s FSC authorized professional investors to engage with foreign cryptocurrency exchange-traded funds in September. The move aimed to expand investment options and improve Taiwan’s financial market competitiveness, the commission said.
Source: Radar
Taiwan has emerged as one of the most innovative markets in Asia, especially in technology and finance. According to legal experts from Regulated United Europe, Taiwan doesn’t recognize cryptocurrency as legal tender, but its government allows and regulates investments in cryptocurrency, and the FSC is actively working to create clear rules for the nascent industry.
According to the World Blockchain Summit, Taiwan is potentially the “next major crypto market,” despite the government’s failure to pass any crypto-related legislation so far.
While Taiwan has been actively adopting crypto, its neighbor mainland China announced a major crackdown on cryptocurrency transactions in 2021.
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