Regulators in Taiwan are reportedly planning a trial run of crypto custody services in local banks next year.
According to a new report by the Central News Agency (CNA), a media outlet backed by the government of Singapore, Taiwan’s Financial Supervisory Commission (FSC) is planning on letting banks trial digital asset custody services starting Q1 of 2025.
So far, three private banks have expressed interest in the program.
According to the report, Hu Zehua, Director of the Comprehensive Planning Division of the FSC, said during a press conference that before accepting applications, there will be a 15-day period for external opinions to be heard and considered.
The FSC says that firms applying for a trial run of crypto custody services must disclose the specific digital assets they were to keep as well as disclose their target clientele, such as whether they are retail investors, professional investors, or crypto exchange platforms.
According to Hu Zehua, the FSC pays “special attention” to the cybersecurity practices of a firm offering crypto custody services and also asks companies to combat money laundering by blocking digital assets that originate from illicit funds.
Last week, the FSC amended its policy, mandating that all crypto-based companies register with the regulator by September 2025 or face penalties of up to two years in prison or $156,000 in fines.
Near the end of September, the FSC also announced that it would now be allowing professional traders to invest in foreign crypto exchange-traded funds (ETFs).