Test

Taiwan’s Financial Supervisory Commission is preparing to roll out a pilot program for institutional crypto custody. The regulatory agency intends to collect applications in early 2025, and three private banks have already expressed interest in participating. 
The latest move signifies efforts to promote institutional adoption of crypto in the region. 
<h2 id="institutional-crypto-custody-in-taiwan">Institutional Crypto Custody in Taiwan</h2> 
According to a <a href="https://pchome.megatime.com.tw/news/cat1/20241008/17283998889300522003.html" target="_blank" rel="noopener" data-wpel-link="external">report</a> by local media, institutions participating in the pilot must specify the types of virtual assets they will custody—such as Bitcoin, Ethereum, or Dogecoin—and identify whether their services are for platforms, professional investors such as institutions, high-net-worth entities, or the general public. 
In a press conference held earlier this week, Hu Zehua, the FSC’s Director of Comprehensive Planning, highlighted that while some security companies expressed interest, banks are better suited for this role due to their larger capital reserves and security considerations. 
Zehua also mentioned that the FSC plans to hold a 15-day public consultation before accepting applications for the trial operation of virtual asset custody services. 
During this period, the regulatory watchdog will explain the proposed guidelines and invite external opinions, which will be used to make necessary revisions before the official launch. This process aims to allow the three private banks that have expressed interest in the trial to submit their applications once the review period concludes. 
<h2 id="taiwan-s-focus-on-crypto">Taiwan’s Focus on Crypto</h2> 
The latest development comes amidst the Taiwanese government’s increased focus on crypto. Recently, the FSC <a href="https://cryptopotato.com/taiwans-fsc-unveils-new-aml-regulations-for-virtual-asset-providers/" target="_blank" rel="noopener" data-wpel-link="internal">introduced</a> a policy allowing professional investors to invest in foreign crypto exchange-traded funds (ETFs) through local brokers, limiting access to only professional investors. 
Additionally, the FSC <a href="https://cryptopotato.com/taiwans-fsc-unveils-new-aml-regulations-for-virtual-asset-providers/" target="_blank" rel="noopener" data-wpel-link="internal">updated</a> its Anti-Money Laundering (AML) regulations last week in a bid to boost oversight of local virtual asset service providers (VASPs). Non-compliant entities will face severe penalties. The new AML measures, effective January 1, 2025, require all crypto firms to register with the government by September 2025. 
As reported by CryptoPotato, those failing to comply could face up to two years in prison or fines of up to 5 million New Taiwan dollars (which is worth approximately $155,900). Despite already existing AML regulations from July 2021, even fully compliant companies must re-register with the agency to avoid penalties. 
The post <a href="https://cryptopotato.com/taiwans-financial-watchdog-prepares-to-test-crypto-custody-services-with-local-banks/" rel="nofollow">Taiwan’s Financial Watchdog Prepares to Test Crypto Custody Services with Local Banks</a> appeared first on <a href="https://cryptopotato.com/" rel="nofollow">CryptoPotato</a>.

Taiwan’s Financial Watchdog Prepares to Test Crypto Custody Services with Local Banks

Table of Contents

CryptoPotato_News

Other articles published on Oct 9, 2024

Celestia Foundation Raises $100M to Expand Modular Blockchain Ecosystem

MicroStrategy Breaks Away from Bitcoin, Nearing All-Time High: A Comprehensive Overview

Dragonz Lab Raises $9M Led by Syndicate Capital to Boost Dragonz Land Ecosystem

CHINPEPE Solana Memecoin to Explode 19,000% Before Exchange Listings, As Shiba Inu and DOGE Lag

Nudge Launches Re:allocation Points App – Unlocking Hidden Value in User Wallets

Top 10 Solana Altcoins Developers Are Focusing On Revealed

Join our free newsletter for daily crypto updates!