Hold on to your digital wallets, folks! Taiwan's Financial Supervisory Commission (FSC) is gearing up for something big in the world of crypto. They're plotting a grand entrance into the institutional crypto custody scene with a pilot program set to kick off in 2025. And guess what? They're rolling out the red carpet for feedback from the outside world before the big launch!
The FSC is opening the doors for applications early in 2025, and it seems like three private banks are already eyeing the opportunity to jump on board. This marks a significant push to get institutions in the region cozying up to crypto.
So, what's on the agenda? According to a local scoop, any institution wanting to play ball will need to outline exactly which digital treasures they plan to handle. Will it be the classic Bitcoin, the versatile Ethereum, or perhaps the quirky Dogecoin? Plus, they'll need to clarify if their services cater to platforms, big-shot investors, high-rollers, or just the everyday Joe.
Earlier this week, Hu Zehua, the FSC's Director of Comprehensive Planning, took to the podium with some insights. While a few security firms showed interest, Zehua reckons that banks are the real MVPs here, thanks to their hefty capital reserves and solid security chops.
But wait, there's more! Before the applications start pouring in, the FSC is planning a 15-day public consultation spree. During this time, they'll be laying out their plans and inviting feedback to tweak things just right. This gives those eager banks a chance to prepare their applications once the consultation wraps up.
This move is part of Taiwan's growing love affair with crypto. Recently, they've opened the doors for professional investors to dabble in foreign crypto ETFs through local brokers. But this VIP access is strictly for the pros.
And in the spirit of keeping things legit, the FSC updated its Anti-Money Laundering (AML) game plan. Starting January 1, 2025, all crypto firms must register with the government by September of that year. Those who don't play by the rules could face some serious consequences, like up to two years behind bars or hefty fines. Even those already on the straight and narrow with existing AML rules from 2021 need to re-register to avoid any hiccups.
So, buckle up, crypto enthusiasts! Taiwan is making waves in the crypto sea, and it’s going to be one exciting ride.
