Outside Source
Taiwan’s financial watchdog reportedly plans to launch a pilot program for crypto custody services, with three banks already expressing interest.
Taiwan‘s Financial Supervisory Commission is set to launch a pilot program for crypto custody services, aiming to stimulate institutional adoption of digital assets in the region, Taiwan’s official state news agency the Central News Agency has learned.
The FSC is said to be planning to encourage financial institutions to apply for themed business trials, with three banks already expressing interest in participating, with the first applications expected in Q1 2025.
Hu Ze-hua, director of the FSC’s comprehensive planning department, noted in a commentary to CNA that while brokerage firms had also shown interest, concerns over capital adequacy and security may lead them to partner with banks from the same group to apply for the trial.
As part of the application process, financial institutions will need to specify the types of crypto they plan to hold as well as their target clients. Hu highlighted that foreign banks typically begin by serving crypto exchanges before expanding their services to professional and general investors.
The FSC is also reportedly aiming to implement stricter anti-money laundering rules to prevent custody of assets tied to illegal activities, although specific details have yet to be revealed. Earlier in October, crypto.news reported that the FSC prepared a draft of the “VASP Registration Regulations,” set to take effect on Jan. 1, 2025. The measures follow amendments to the AML Act made in July as part of Taiwan’s broader initiative to regulate its growing crypto sector.
Unlike previous AML regulations, the new rules will specifically target crypto-related businesses, requiring entities such as crypto exchanges, trading platforms, and custodians to register and comply with enhanced anti-money laundering protocols. Once enacted, crypto providers will be mandated to submit annual risk assessment reports and establish internal control and audit systems.
This article first appeared at crypto.news
