Private banks in Taiwan are trying to explore virtual asset custody
Taiwan’s Financial Supervisory Commission (FSC) is exploring ways to integrate Web3 services into its financial ecosystem. At a recent press conference, FSC official Hu Zehua stated that the regulatory body is open to involving financial institutions in trials of virtual asset custody services. The move follows growing interest from private lenders in recent months, with some securities firms reportedly also showing interest in entering this space.
In Taiwan, the Financial Supervisory Commission (FSC) regulates the virtual assets industry. By the end of this year, the FSC plans to finalize a draft of a new law that will outline compliance requirements for financial institutions interested in participating in these investigations, according to Taiwanese publication CNA reported.
According to a CNA report, Bitcoin, Ether and Dogecoin have been identified as the virtual assets selected for upcoming custodial trials. Financial institutions involved will have the opportunity to offer these services to different groups, including virtual asset platforms, private investors or professional investors.
According to Hu Zehua, the FSC is expected to start accepting applications for virtual asset custody trials in the first quarter of 2025, between January and March. Zehua also announced that three private banks have already expressed interest in participating.
The FSC wants to ensure that all crypto custodians in Taiwan implement and maintain the highest security standards. Zehua stressed that platforms entering the virtual asset custody industry must be able to identify and block transactions from suspicious accounts or risk having their wallets seized.
The CNA report also noted that these investigations are limited to banks only, and there is little chance of them being extended to individual investors.
Recently, Taiwan has become a hub for large-scale crypto events such as Taipei Blockchain Week. The digital asset market in Taiwan, Statista projectsis likely to grow at 7.74 percent between 2024 and 2028, resulting in a market volume of $3,391 million (approximately Rs. 28,474 crore) in 2028.
In June this year, Taiwanese government officials joined forces with local crypto companies to establish the Taiwan Crypto Blockchain Self-Regulatory Organization (TCBSRO). This body aims to implement industry standards to help refine and regulate the country’s crypto sector.
