By Nermeen Nabil Khear 
Taiwan seems set to emerge as the next crypto hub after announcing plans to introduce crypto custody services through local banks.
The country’s Financial Supervisory Commission (FSC) plans to have a trial run in the first quarter of 2025. Financial players like banks can apply to store digital assets like cryptocurrencies.
Taiwan Banks Join Crypto Push, Aiming for Digital Asset Leadership
Integrating crypto into the mainstream is a big step for Taiwan. It also mirrors the island’s ambitions to become Asia’s major digital asset market. News of the pilot was greatly received by banks in Taiwan.
Three private banks have already expressed interest in piloting this service. The FSC sees regulated banks as a safe and trustworthy option for managing cryptocurrency, potentially reducing the risks of hacking and fraud.
LATEST: Taiwan to Trial Crypto Custody Services in 2025
Taiwan’s Financial Supervisory Commission will start collecting applications for crypto custody services in Q1 2025, with interest from three local banks. pic.twitter.com/eYQ5W58hze
— Cointelegraph (@Cointelegraph) October 9, 2024
The FSG reportedly requires banks seeking the custody of digital assets to specify the type of assets they store for clients. This could be Bitcoin, Dogecoin, etc. Furthermore, these institutions have to specify their target audience, which could be experienced investors or others.
How Big is this for Taiwan?
The Taiwanese government has increased its involvement in digital assets. The FSG’s move to allow banks to custody digital assets is no doubt timely. How big is this move for Taiwan’s bid to become pro-crypto?
Crypto investors have mostly been concerned about the security of most third-party platforms. Some of these platforms are easy prey to hacks. However, moving custody to financial institutions provides a sense of safety for investors.
The launch also allows Taiwanese banks to tap into a fast-growing market. The popularity of crypto assets means banks can expand their customer base. However, this transition is not without hurdles. Banks will need to upgrade their technology and provide specialized training to ensure they can securely manage digital assets. However, a successful trial could launch Taiwan into a major digital asset hub in Asia.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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