The Financial Supervisory Commission (FSC) announced that as of late April, four banks—CTBC Bank, Cathay United Bank, KGI Bank, and Union Bank—have applied for virtual asset custody licenses. With a two-month review period, approvals are expected by late June, marking the debut of regulated cryptocurrency custody services in Taiwan.
Key Developments in Virtual Asset Custody
- First-Wave Applications: The four banks met the April 30 submission deadline and are now under priority review.
- Expanding Participation: Taishin Bank is in preparatory stages, while two other private banks have expressed interest, totaling seven potential providers.
Regulatory Timeline and Flexibility
Initially launched in November 2024, the FSC’s "Virtual Asset Custody Pilot Program" allowed financial institutions to apply between January 1 and April 30, 2025. Due to varying operational readiness among applicants, the FSC extended the submission window indefinitely—with a second wave opening June 15.
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Strategic Benefits for Stakeholders
- Banks: New fee-based revenue streams (e.g., percentage-based custody charges) and entry points into virtual asset markets.
- Exchanges: Enhanced security via third-party custody solutions.
- Investors: Increased trust through regulated institutional involvement.
Core Keywords
- Bitcoin custody
- Virtual asset regulation
- Bank custody services
- Cryptocurrency security
- FSC pilot program
FAQ
Q: When will approved custody services launch?
A: The first licenses are expected by end-Q2 2025.
Q: Which banks are leading the initiative?
A: CTBC, Cathay United, KGI, and Union Bank applied in the first wave.
Q: How does this benefit crypto investors?
A: Bank-backed custody reduces counterparty risks and boosts platform credibility.
The FSC’s move signals growing institutional adoption of cryptocurrencies, offering a secure gateway for investors and innovators alike.
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### Key Features