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Taiwan's Financial Supervisory Commission (FSC) is set to launch a pilot program for virtual asset custody services in early 2025, local media outlet Central News Agency reported this week.
The pilot program comes as part of the FSC's broader efforts to foster innovation in the financial sector while ensuring consumer protection and market integrity. The regulator has been working on a dedicated special law for the virtual asset industry, which is expected to be finalized by the end of this year.
The regulator is opening its plans to feedback for a period of 15 days before formally accepting applications from financial institutions to take part in the trial, Hu Zehua, director of the Comprehensive Planning Division of the Financial Supervisory Commission, said.
Three unnamed banks have already expressed interest in participating in the pilot program, signaling growing confidence in the potential of the digital asset market. The FSC has emphasized the importance of security and anti-money laundering measures for any financial institution involved in the custody of digital assets.
While the initial focus of the pilot program will be on serving virtual asset exchanges and professional investors, the FSC has indicated that it may eventually expand the scope of services to include retail investors. This move could significantly increase the accessibility of digital assets for the general public in Taiwan.
Blockhead
Earlier this week, the FSC announced that all virtual asset service providers (VASPs) operating in the country must register with the regulator by the end of September 2025.
Failure to comply could result in severe penalties, including imprisonment of up to two years and fines of up to NT$5 million (approximately $155,000).
Additionally, the FSC also plans to introduce a comprehensive "special law" governing cryptocurrencies. This law, which is being drafted with reference to regulatory frameworks in the European Union, Japan, Hong Kong, the United Kingdom, and South Korea, is expected to be released in June 2025 and subsequently approved by the Executive Yuan, the executive branch of Taiwan's government.
