The Financial Supervisory Commission in Taiwan will soon start testing crypto custody services among local institutions in a bid to promote crypto adoption.
The Financial Supervisory Commission, a regulator in Taiwan, will soon helm a pilot project on crypto custody services. The project will test the service among local institutions, mainly banks. According to reports in Taiwan, the regulator will start collecting applications from interested parties in 2025. However, three banks have reportedly submitted their interest for the same.
Crypto custody refers to the secure storage and management of digital assets, such as Bitcoin, Ethereum, and other crypto assets. It’s akin to a traditional bank safeguarding your physical money. The media reports detailing the development in Taiwan mentioned how the banks have to specify their custody services. In other words, they have to mention which assets, be it BTC, ETH, or DOGE, were they willing to custody for their clients.
At the same time, the banks had to specify the kind of clients they were targeting. It could include retail investors or even institutional firms. Other subcategories could be general or professional investors.
Meanwhile, just a few days back, the Taiwanese government published regulations for crypto service providers. This move was in the direction of preventing crimes like money laundering among crypto service providers.
A translated version of the official order of the regulations stated, “Virtual asset service providers should handle money laundering prevention registration respectively according to the business categories they operate, including virtual asset exchanges, trading platforms, transfer providers, custodians, and underwriters.”
With these regulations, Taiwan has moved towards making itself a well-regulated and transparent zone for crypto-related activities. Regions like the European Union and the UAE have established themselves as crypto hubs with similar regulatory laws.
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