Taiwan to launch digital asset storage pilot for banks in 2025
Taiwan’s Financial Supervisory Commission (FSC) plans to launch a pilot program for institutions interested in digital asset custody services, local media reported on October 8.
The program is part of the country’s broader efforts to promote financial innovation, with plans to introduce comprehensive legislation for the digital asset industry by the end of 2024.
According to reports, three banks have already expressed interest in participating in the program, which is scheduled to begin accepting applications in early 2025.
Institutional cryptocurrency storage
The FSC will encourage financial institutions to participate in a pilot program that will enable banks to secure digital assets such as cryptocurrencies for their customers.
Hu Zehua, director of the FSC’s comprehensive planning department, said at a press conference that the FSC would open a 15-day consultation period to collect public opinions.
After reviewing the feedback, regulators will finalize details and announce when applications for the pilot program can open.
So far, three private banks have expressed interest in the scheme. Our goal is to provide custody services to virtual asset exchanges and institutional investors.
Hu noted that some securities firms have also shown interest, but there are concerns about security due to small capital reserves. Accordingly, the possibility of support from banks belonging to the same financial group has increased.
Security is our top priority
FSC will make security a top priority in overseeing the storage of virtual assets. According to Hu, institutions handling digital currencies must ensure strong safeguards due to the large potential sums involved.
The FSC will also implement robust anti-money laundering (AML) protocols to prevent illicit funds from entering the system and reduce the risk of asset seizure.
Financial institutions interested in the pilot must specify which virtual asset they want to manage, such as Bitcoin, Ethereum, or Dogecoin. You should also outline your target audience, which may include virtual asset platforms, professional investors, or retail customers.
Internationally, banks tend to focus on virtual asset exchange services first, later expanding services to institutional investors once security measures have proven reliable. Hu noted that retail investors rarely receive such services in the first place.
Taiwan’s move to support virtual asset services reflects the government’s commitment to financial innovation while keeping safety and regulatory standards a priority.
