Integrating crypto into the mainstream is a big step for Taiwan. It also mirrors the island's ambitions to become Asia's major digital asset market.
Taiwan is set to become the next crypto hub after announcing plans to introduce crypto custody services through local banks in the first quarter of 2025.
The country’s Financial Supervisory Commission (FSC) will begin collecting applications from banks interested in piloting the service, reports Cointelegraph.
Three private banks have already expressed interest in piloting the service, which will see banks store digital assets like Bitcoin and Dogecoin for their clients.
The FSC reportedly requires banks seeking the custody of digital assets to specify the type of assets they store for clients. This could be Bitcoin, Dogecoin, etc. Furthermore, these institutions have to specify their target audience, which could be experienced investors or others.
Taiwan’s bid to become pro-crypto, how big is this move?
The Taiwanese government has been ramping up its involvement in digital assets. The FSG’s move to allow banks to custody digital assets is no doubt coming at the right time.
But how big is this move for Taiwan’s bid to become pro-crypto? Well, for starters, crypto investors have mostly been concerned about the security of most third-party platforms. Some of these platforms are easy prey to hacks. However, moving custody to financial institutions provides a sense of safety for investors.
The launch also allows Taiwanese banks to tap into a fast-growing market. The popularity of crypto assets means banks can expand their customer base. However, this transition is not without hurdles.
Banks will need to upgrade their technology and provide specialized training to ensure they can securely manage digital assets. Nevertheless, a successful trial could launch Taiwan into a major digital asset hub in Asia.
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