Regulators in Taiwan are gearing up for a trial run of cryptocurrency custody services in local banks in the coming year. The Financial Supervisory Commission (FSC) of Taiwan is reportedly planning to allow banks to test digital asset custody services starting in the first quarter of 2025.
According to a report by the Central News Agency (CNA), three private banks have already shown interest in participating in the program. Hu Zehua, the Director of the Comprehensive Planning Division of the FSC, mentioned during a press conference that there will be a 15-day period for external opinions to be gathered and considered before accepting applications from interested banks.
The FSC has outlined certain requirements for firms applying for the trial run of crypto custody services. These firms must disclose the specific digital assets they intend to keep and identify their target clientele, whether they are retail investors, professional investors, or crypto exchange platforms. The commission is particularly focused on the cybersecurity measures of these firms and expects them to implement strong anti-money laundering practices.
In a recent development, the FSC amended its policy, making it mandatory for all crypto-based companies to register with the regulator by September 2025. Failure to comply could result in penalties of up to two years in prison or fines amounting to $156,000. Additionally, the FSC announced that professional traders will now be allowed to invest in foreign crypto exchange-traded funds (ETFs).
As the cryptocurrency landscape continues to evolve, Taiwan is taking proactive steps to regulate and monitor the market. The trial run of crypto custody services in local banks signifies a move towards creating a more secure and transparent environment for digital asset transactions in the country.
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