Taiwan's Financial Supervisory Commission (FSC) is set to launch a pilot program for crypto custody services to enhance institutional adoption of digital assets, with three banks already showing interest.
Planned Crypto Custody Program
The FSC aims to encourage financial institutions to apply for themed business trials to develop crypto custody services. The first batch of applications is expected in Q1 2025.
Bank Participation and Brokerage Interest
Hu Ze-hua, director of the FSC’s comprehensive planning department, indicated that while brokerage firms also showed interest, concerns over capital adequacy and security might lead them to partner with banks from their groups for joint applications.
Anti-Money Laundering Measures and Regulation
The FSC aims to implement stricter anti-money laundering measures to prevent the custody of assets linked to illegal activities. As part of this approach, crypto providers will need to submit annual risk assessment reports and establish internal control and audit systems.
The FSC's pilot program for crypto custody marks a step towards stricter regulation of the crypto sector, aiming to engage financial institutions in secure digital asset management.