 is getting ready to start the institutional trial of cryptocurrency custody services in 2025.){kind=link}
Taiwan is stepping up its crypto support game as the user base in the country rises. According to local media reports, the country will adopt a crypto custody service through local banks in the coming year.
The step comes as an indirect way of bringing regulations in the decentralized market and may also bolster hopes of better institutional crypto usage in the country.
FSC Stays Ready For Pilot Crypto Custody Project
Taiwan’s Financial Supervisory Commission (FSC) is getting ready to start the institutional trial of cryptocurrency custody services in 2025.
The Financial Supervisory Commission of the country has said that three private banks have shown interest in entering the virtual asset custody market at present.
The banks hope to provide their services to professional institutional investors as well as virtual asset exchanges. The security of the custodial industry will also be a top priority for the Financial Supervisory Commission.
Additionally, the Financial Supervisory Commission will give the custody industry’s security a lot of thought. It places equal emphasis on security and the application of anti-money laundering measures.
Financial institutions run the risk of having to take the entire virtual asset wallet if they don’t specifically block virtual assets that come from unlawful funding.
What Is Crypto Custody Service?
Cryptocurrency custody solutions refer to the provision of crypto-asset security services by third parties. Their services are primarily targeted at institutional investors that own significant amounts of bitcoin or other cryptocurrencies, such as hedge funds, exchanges, or exchange traded funds.
Typically, the solutions combine hot and cold storage—crypto custody techniques that are either linked to or unlinked from the Internet—into one another.
Taiwan’s Growing Adoption of Cryptocurrency
The crypto userbase in Taiwan has been on a steady rise for the past three years. In response to the growing market, the government of the country has also tried to become as crypto-friendly as possible.
Taiwan, the seventh-largest economy in Asia, has introduced a favorable law for cryptocurrency and blockchain businesses after the government realized how Blockchain technology could help the nation’s economy flourish.
To improve the efficiency of the government’s market regulation tools, Taiwanese government authorities have adopted an early policy of self-regulating the local Blockchain industry.
The absence of FinTech market laws in Taiwan drew criticism from the international technology sector for a long time. In contrast to Japan, which acknowledged its shortcomings in FinTech and cutting-edge technology, Taiwan’s government has made an effort to embrace cutting-edge and pertinent technologies.