Cryptocurrencies to be stored in banks in Taiwan

The Financial Supervisory Commission of Taiwan (FSC) intends to allow banks and financial institutions in the country to provide digital asset storage services on an experimental basis.

The regulator will start accepting applications from banks in the first quarter of 2025. Applicants must indicate which crypto assets they intend to store, as well as describe the target audience for which custody services will be provided: crypto platforms, professional or retail investors.

Three private banks in Taiwan have already expressed interest in piloting services for cryptocurrency exchanges and professional investors. Hu Jiehua, Director of Integrated Planning at FSC, emphasized that foreign cryptocurrency storage companies pay great attention to user security to prevent money laundering. Therefore, banks should be able to block digital assets of suspicious origin.

Jiehua added that the FSC will publish information about the launch of the pilot project at least 15 days before the start of the application process. The agency will also collect public feedback on the initiative and may amend it based on the results.

Recently, the FSC threatened crypto companies with stiff fines of up to NT$ 5 million ($ 150,000) and two years in prison for non-compliance. The new rules are expected to take effect on January 1, 2025.