Taiwan’s Regulatory Body Initiates Trials for Institutional Crypto Storage

Taiwan is set to enhance the adoption of institutional cryptocurrency as regulators prepare to trial crypto custody services via local banks.

The Financial Supervisory Commission (FSC) plans to roll out this pilot program, according to a report from October 8.

Applications for the trial are anticipated to be accepted starting in the first quarter of 2025, with three private banks in Taiwan already showing interest in entering the crypto custody market. Participating institutions will be required to detail the types of assets they will hold for clients, including well-known cryptocurrencies like Bitcoin, Ethereum, and Dogecoin. They must also clarify whether they are targeting professional investors, general clients, or specific crypto asset platforms.

At a recent press conference, Hu Zehua, who heads the FSC’s comprehensive planning division, mentioned that guidelines for the trial will be released at least two weeks prior to the application period. The commission also plans to solicit public feedback on the proposed program to ensure it meets community needs.

This development reflects the Taiwanese government’s increasing engagement with the cryptocurrency sector. Recently, the FSC updated its Anti-Money Laundering policies concerning digital assets, mandating that crypto firms register by September 2025 or face severe penalties. In a move to diversify investment options, the commission also allowed professional investors to access foreign cryptocurrency exchange-traded funds, aiming to bolster Taiwan’s financial competitiveness.

Although Taiwan does not recognize cryptocurrency as legal tender, it permits regulated investments in the sector, and the FSC is actively working on establishing a framework for this emerging industry. Despite the absence of specific crypto legislation, Taiwan is being considered a potential hub for cryptocurrency in Asia, particularly in contrast to mainland China, which has imposed strict restrictions on crypto transactions since 2021.