Taiwan to Trial Crypto Custody Services in Banks by 2025

Beginning in the first quarter of 2025, the Financial Supervisory Commission (FSC) of Taiwan intends to test out cryptocurrency custody services in regional banks. As per a Central News Agency (CNA) source, three private banks have shown their interest in taking part in the scheme. With a focus on security and regulation, Taiwan intends to progressively incorporate digital assets into its financial system, as shown by the FSC’s action.

This project, which will enable banks to protect digital assets, is a critical turning point in the evolution of Taiwan’s cryptocurrency scene.

Key Requirements for Crypto Custody Trials

As part of the trial, banks must meet strict guidelines. According to Hu Zehua, Director of the Comprehensive Planning Division of the FSC, banks will need to disclose which digital assets they plan to custody and outline their target clients. These could include retail investors, professional traders, or cryptocurrency exchanges. Additionally, the FSC will consider cybersecurity measures and compliance with anti-money laundering protocols.

The regulator is particularly focused on preventing the use of illicit funds in crypto transactions. Companies applying to offer crypto custody will be required to block any digital assets linked to illegal activities.

In addition to the custody trial, Taiwan’s FSC recently tightened regulations for crypto-based firms. By September 2025, all crypto companies must register with the FSC or face severe penalties, including fines of up to $156,000 or potential imprisonment. In a move to attract more institutional participation, the FSC has also opened the door for professional traders to invest in foreign crypto exchange-traded funds (ETFs).

This shift highlights Taiwan’s growing focus on regulating the crypto space, ensuring that it remains both secure and accessible for investors.