Taiwan FSC to Launch Crypto Asset Custody Trial, Three Banks Show Interest
- The Taiwan FSC plans to launch crypto asset custody trials, inviting financial institutions to participate in innovation.
- Three private banks have already shown interest, with trial applications expected by Q1 2025.
- The TFSC will emphasize security and compliance to ensure a safe virtual asset custody environment.
Taiwans Financial Supervisory Commission (TFSC) is taking significant steps to integrate crypto assets into the financial sector. The commission is paving the way for a trial run of virtual asset custody services by encouraging financial institutions to innovate, according to a recent report.
Currently, interest in participation has been expressed by three private banks. The first applications for such pilots are expected to appear in the first quarter of 2025, which would be a serious turn in Taiwans attitude toward the growing crypto market.
TFSC to Introduce Crypto Law for Financial Innovation by Year-End
To enhance financial innovation, the TFSC intends to propose a special law at the end of this year, and explicitly state how to follow laws and regulations so that the development of the virtual asset industry can be facilitated. Hu Zehua, director of the Comprehensive Planning Division at the TFSC, revealed the commissions plan in a recent press conference.
He added that the TFSC will solicit public comments for 15 days before the official acceptance of trial applications to fine-tune the custody framework, making it more in tune with the needs of the industry and regulators.
TFSC Prioritizes Crypto Security in Virtual Asset Custody Trial
In this new environment, security is the top priority for TFSC. Zehua indicated that there might be a lot of financial transactions with virtual asset custody, so solid security measures are necessary. The institutions desiring to participate in this trial will need to demonstrate a commitment to the prevention of money laundering by strictly tracking virtual assets from illegal activities.
The custody services are very likely to target exchanges, professional investors, and perhaps later retail investors once the system has matured. While Taiwan is developing a long-term plan, the TFSCs move is a proactive one in positioning itself in embracing digital assets while putting safety and compliance first.
With these measures in place, the country hopes to emerge as a major player in crypto, offering a safe haven for institutional and individual investors. The trials that might not be very far away could set a benchmark for custody of virtual assets, thereby defining Taiwans financial topography for the next decades.
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Read more: https://www.tronweekly.com/taiwan-fsc-to-launch-crypto-asset-custody-trial/
Text source: TronWeekly
