Taiwan Takes a Step Closer to Web3 Integration with Crypto Custody Trials
In a significant move, Taiwan’s Financial Supervisory Commission (FSC) has announced plans to integrate Web3 services into its financial ecosystem. At a recent press conference, FSC official Hu Zehua expressed the regulatory body’s openness to involving financial institutions in trials for virtual asset custody services. This development comes on the heels of growing interest from private lenders and securities firms in the crypto space.
According to the FSC, the trials will be limited to banks, with three private institutions already expressing interest in participating. The regulator plans to begin accepting applications for virtual asset custody trials in the first quarter of 2025, with Bitcoin, Ether, and Dogecoin identified as the virtual assets selected for the trials.
The trials will allow financial institutions to offer custody services to various groups, including virtual asset platforms, retail investors, and professional investors. The FSC aims to ensure that all crypto custody businesses in Taiwan implement and maintain the highest security standards, emphasizing the importance of identifying and blocking transactions from suspicious accounts to avoid wallet seizures.
The move is seen as a significant step towards integrating Web3 services into Taiwan’s financial ecosystem. The country has been emerging as a hub for large-scale crypto events, including the Taipei Blockchain Week. The digital assets market in Taiwan is projected to grow by 7.74% between 2024-2028, resulting in a market volume of $3,391 million by 2028.
The Taiwan Crypto Blockchain Self-Regulatory Organization (TCBSRO), established in June this year, will play a crucial role in implementing industry standards to help refine and regulate the country’s crypto sector. As Taiwan continues to push the boundaries of Web3 integration, it will be fascinating to see how this move impacts the global crypto landscape.
