Taiwan’s Financial Supervisory Commission (FSC) is set to introduce a trial phase for crypto asset custody services in local banks, anticipated to start in the first quarter of 2025. This initiative aims to enhance the security of digital asset management within the financial sector.
Which Banks Are Participating in the Program?
Three private banks have indicated their interest in this trial program. The FSC will review applications within a 15-day timeframe before granting approval.
What Are the Key Security Concerns?
The FSC emphasizes the importance of robust cybersecurity measures for firms providing crypto custody services. Additionally, these companies will need to implement measures aimed at preventing money laundering, especially concerning assets originating from illicit sources.
– The trial will involve scrutiny of the types of crypto assets each bank intends to manage.
– Applications must specify the target clientele, which could range from individual investors to professional and institutional users.
– New regulations require all crypto firms to register by September 2025, with penalties for noncompliance including imprisonment or substantial fines.
Successful trials could pave the way for widespread acceptance of secure crypto asset services, fostering a safer environment for investors. This initiative is part of Taiwan’s broader strategy to strengthen its position in financial technology while ensuring that individuals can engage in safe digital transactions.