As a seasoned analyst with over two decades of experience in the financial industry, I must say that Taiwan’s decision to launch a pilot program for crypto custody services is a significant step towards embracing digital assets. Having closely observed the global financial landscape, it’s clear that this move aligns with the trend of institutional adoption of cryptocurrencies.
It’s said that Taiwan’s monetary regulatory body is considering initiating a trial project for cryptocurrency safekeeping solutions, and there are currently three banks who have shown interest in participating.
The Financial Supervisory Commission in Taiwan plans to initiate a trial run of cryptocurrency safekeeping services. This move is intended to encourage the use of digital assets by institutions within the region, as reported by Taiwan’s Central News Agency.
According to reports, the Forest Stewardship Council (FSC) is considering inviting financial institutions to take part in thematic business pilots. As of now, it appears that three banks have shown initial interest, and it’s expected that the first applications for these trials will be submitted during Q1 2025.
As a crypto investor, I’ve been keeping an eye on the news about potential partnerships for the upcoming trial. According to Hu Ze-hua, director of the FSC’s comprehensive planning department, brokerage firms have expressed interest, but might collaborate with banks from the same group due to concerns about capital sufficiency and security.
During the application procedure, financial institutions are required to disclose the kinds of cryptocurrencies they intend to store, along with their potential client base. Notably, foreign banks often commence operations by catering to crypto exchange platforms, subsequently broadening their services to include professional and individual investors.
It’s said that the Financial Supervisory Commission (FSC) is looking to strengthen its anti-money laundering policies, with the goal of barring assets linked to illegal activities from being held. However, exact details about these measures have not been disclosed yet. Previously in October, crypto.news reported that the FSC was planning to enact “VASP Registration Regulations,” which are expected to be implemented on January 1, 2025. These regulations are part of a broader effort by Taiwan to regulate its expanding cryptocurrency sector, following revisions to its Anti-Money Laundering Act in July.
Instead of past AML regulations that applied broadly across various sectors, the upcoming rules are designed to focus particularly on businesses dealing with cryptocurrencies. This includes platforms like crypto exchanges, trading sites, and custodians who will need to register and adhere to stricter anti-money laundering practices. Once implemented, these crypto service providers will be obligated to submit an annual risk assessment report and establish robust internal control and auditing systems.
Read More
Sorry. No data so far.
2024-10-10 10:33