Taiwan to Launch Crypto Custody Service Trials with Local Banks in 2025

Taiwan's regulators are gearing up to test crypto custody services with local banks next year. According to a report from the Central News Agency (CNA), which is backed by the Singaporean government, the Financial Supervisory Commission (FSC) plans to kick off this trial in the first quarter of 2025.

So far, three private banks have shown interest in joining the program. Hu Zehua, the Director of the Comprehensive Planning Division at the FSC, mentioned during a press conference that there will be a 15-day period for gathering external feedback before they start accepting applications.

The FSC requires companies that want to participate in these crypto custody trials to specify the digital assets they intend to hold. They also need to identify their target clients, whether they are retail investors, professional investors, or crypto exchange platforms.

Hu emphasized that the FSC pays close attention to the cybersecurity measures of firms offering these services. They expect companies to actively combat money laundering, ensuring they don’t accept digital assets tied to illegal activities.

Recently, the FSC updated its policy. Now, all crypto-related businesses must register with the regulator by September 2025. If they don’t, they could face penalties of up to two years in prison or fines of up to $156,000.

Additionally, at the end of September, the FSC announced that it will allow professional traders to invest in foreign crypto exchange-traded funds (ETFs). This move opens up new opportunities for investors in Taiwan.