Taiwan Crypto News: Local Banks to Trial Custody Services in 2025

Taiwan Crypto News: Local Banks to Trial Custody Services in year 2025

While Taiwan has not yet passed any formal cryptocurrency legislation, it has emerged as a major player in Asia's crypto landscape. With the government’s ongoing efforts to regulate the market, Taiwan is positioning itself as a potential leader in the region’s crypto economy.

Taiwan is taking a significant step towards institutional cryptocurrency adoption by preparing to trial crypto custody services through local banks. The Financial Supervisory Commission (FSC) of Taiwan announced plans to start accepting applications from financial institutions interested in offering these services by the first quarter of 2025, according to local media reports.

Three private banks have already shown interest in piloting Bitcoin, Ether, and Dogecoin custody services, signaling a growing interest in cryptocurrency from Taiwan's financial sector. The FSC has confirmed that any institution applying for the trial must outline the types of crypto assets they plan to store for clients, along with the type of customers they will serve—ranging from general investors to professional traders or crypto platforms.

Crypto Regulations and Market Growth

As part of its preparation for the trial, the FSC will release detailed guidelines and collect public feedback to fine-tune the process. This move follows recent updates to Taiwan's Anti-Money Laundering (AML) laws, which now require crypto companies to register with the government by September 2025. Failure to do so could result in penalties, including prison sentences of up to two years or fines of up to $156,000.

Taiwan's push to embrace cryptocurrency continues to gain momentum. In September 2023, the FSC allowed professional investors to engage with foreign cryptocurrency exchange-traded funds (ETFs), further expanding the country's investment landscape. Taiwan is positioning itself as a major player in the crypto market, although the country does not yet recognize cryptocurrencies as legal tender.

Taiwan’s Growing Role in the Crypto World

As Taiwan strengthens its position in the technology and financial sectors, it’s increasingly seen as a potential leader in the Asian crypto market. This development contrasts sharply with mainland China, where cryptocurrency trading has been strictly banned since 2021. The Taiwanese government remains focused on regulating and expanding the crypto industry while fostering a supportive environment for growth.

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