Over the past two years, Taiwan has been increasingly taking a keener interest in the field of cryptocurrencies. Although most markets in that particular field have not come under widespread regulation, there has been a steep rise in retail and institutional investors taking a serious look at alternative forms of investment such as Bitcoin and other cryptocurrencies.
Taiwan Crypto Situation
Yet, out of all the challenges that crypto investors had to face, at the forefront of their considerations was the security of their digital assets, whether through a private custody solution or the use of third-party services.
Therefore, embedding these services within local banks is an important step toward better security and reliability for cryptocurrency-related operations.
In this regard, the FSC plays a very pivotal role in this process. This now opens the market for the custody services of cryptocurrency to the local banks, as the regulator attempts to deepen investor protection and pave the way for wider adoption of digital currencies.
The FSC will start receiving applications from those financial institutions willing to take part in such a pilot during the first quarter of 2025.
Conclusion
On that note, the regulator plans to engage banks in establishing strict standards for security that could ward off cyberattacks and fraud against these digital assets.
At the same time, banks, already under airtight regulations, would prove to be reliable partners in bringing more transparency and regulatory compliance in the crypto sector.
