The Taiwan Financial Supervisory Commission (FSC) is exploring ways to integrate Web3 services into its financial ecosystem. In a recent press conference, FSC official Hu Zehua said regulators are willing to involve financial institutions in the trial of virtual asset custody services. Private lenders have grown in recent months, and some securities companies have reportedly expressed interest in entering the space.
In Taiwan, the Financial Supervisory Commission (FSC) regulates the virtual asset industry. By the end of this year, the FSC plans to finalize a new draft law that will outline compliance requirements for financial institutions interested in participating in these trials, according to a Taiwanese publication CNA.
According to a report by the CNA, Bitcoin, Ether and Dogecoin were identified as virtual assets selected for upcoming custody services trials. The financial institutions involved will have the option to provide these services to include virtual asset platforms, retail investors or professional investors.
According to Hu Zehua, the FSC is expected to begin accepting applications for virtual asset custody trials in the first quarter of 2025 between January and March. Zehua also revealed that the three private banks have expressed interest in participating.
The FSC aims to ensure that all cryptocurrency businesses in Taiwan are implemented and maintain the highest security standards. Zehua stressed that platforms entering the virtual asset custody must be able to identify and block transactions in suspicious accounts, otherwise they may be at risk of seizing wallets.
The CNA report also noted that these trials were limited to banks and had little chance of expanding to individual investors.
Recently, Taiwan has become a hub for large-scale crypto events, such as Taipei Blockchain Week. The Taiwan digital asset market for the Statista project is likely to grow 7.74% between 2024 and 2028, with market sales of US$3.391 billion (approximately Rs 28,474 crore) by 2028.
In June this year, Taiwanese government officials joined forces with local crypto companies to establish the Taiwan Crypto Blockchain Self-regulation Organization (TCBSRO). The agency aims to implement industry standards to help refine and regulate the country’s cryptocurrency sector.
