The Taiwanese financial watchdog is reportedly considering testing institutional crypto custody services, with local banks being evaluated for the pilot program.
Taiwan wants to integrate crypto assets into the economy
Taiwan’s financial regulator is the Financial Supervisory Commission (FSC). Allegedly Encouraging local banks to operate digital asset custody services.
In Q1 2025, the regulator plans to collect applications from interested financial institutions willing to test digital asset custody services. Three banks have already expressed interest in participating in the pilot project.
Sources close to the matter suggest that financial institutions wishing to participate in the trial will need to specify the type of digital asset they wish to hold, such as Bitcoin (BTC), Ether (ETH), or Dogecoin (DOGE). . Other.
Given the significant amount of money in the industry – the total market capitalization currently exceeds $2.2 trillion – a number of security-related guidelines have been issued that interested institutions must follow.
For example, relevant institutions must share their target user base, including professional investors, general investors, digital asset institutions, etc. They also have to ensure an efficient security infrastructure and implement mechanisms to prevent money laundering.
Additionally, participating institutions must have security mechanisms in place to avoid linking to digital assets from illicit sources. Failure to do so may result in loss of their cryptocurrency asset wallet seized By government officials.
According to the report, FSC director Hu Zehua commented that the regulator is considering releasing more information about the trial at least 15 days before accepting the application. Additionally, the FSC aims to gather public feedback on the proposed testing and make changes to the process accordingly.
Recent regulatory developments in Taiwan indicate that the island nation is steadily moving towards digital assets. For example, on September 30, F.S.C. allowed Institutional investors can invest in foreign crypto exchange-traded funds (ETFs) through the re-assignment process.
The era of crypto ecosystem is coming in Asia
Taiwan’s recent adoption of digital assets reflects its growing importance as a powerful industry that fuels the national economic vision. However, it is not the only country in Asia that is taking a pro-crypto stance.
Reportedly the neighboring country is Japan Considering Reviewing its existing digital asset rules, potentially leading to lower taxes on crypto gains and approval of ETFs.
Another Asian crypto giant, the United Arab Emirates (UAE), recently announced All digital asset conversion and transfer transactions will be exempt from value added tax (VAT). The move is seen as an effort by the UAE’s financial regulator to attract crypto capital to the country.
However, concerns remain among financial watchdogs about the potential risks of crypto assets for retail investors. a fresh report found that nearly 70% of South Korean crypto exchanges could not withdraw user funds after they shut down their operations. At press time BTC is trading at $62,303, down 0.1% over the past 24 hours.
Featured image from Unsplash.com, chart from tradingview.com
