In alignment with global trends and to foster financial innovation, Taiwan's Financial Supervisory Commission (FSC) announced on November 28 the launch of a thematic pilot program for Virtual Asset Custody (VAC) services. The program will accept applications from financial institutions beginning January 1, 2025, with five private banks already expressing interest. The first approved cases are expected to go live by mid-2025.
Key Program Details
Application and Review Timeline
- Application Period: January 1 – April 30, 2025
- Review Duration: 2 months
- Pilot Duration: 6 months
Interested parties may request guidance from the FSC immediately. Approved applicants will be publicly listed post-review.
Eligibility and Scope
- Open to All Financial Institutions: Banks, securities firms, and fintech collaborations are eligible.
- No Qualification Restrictions: Emphasis on evaluating security protocols and risk management capabilities.
- Exclusions: Services cover only cryptocurrencies (e.g., Bitcoin, Ethereum), excluding tokenized assets (RWA) and NFTs.
Target clients include 26 VASPs (Virtual Asset Service Providers) compliant with anti-money laundering (AML) regulations. Custody for foreign VASPs is also permitted.
Required Application Materials
Applicants must submit documentation addressing seven critical areas:
- Custody models
- Client service plans
- Regulatory compliance
- Organizational structure and management systems
- Security measures
- Asset segregation protocols
- Financial accounting practices
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FAQs
Q1: Which virtual assets are covered under this pilot?
A: Only cryptocurrencies like Bitcoin and Ethereum—not NFTs or tokenized assets.
Q2: Can foreign-based VASPs participate?
A: Yes, custody services for international VASPs are eligible.
Q3: How long does the pilot program last?
A: Six months, with potential for permanent adoption based on outcomes.
Q4: What’s the primary focus of the FSC’s evaluation?
A: Security frameworks and risk mitigation strategies.
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Disclaimer: This article provides market information only. It is not investment advice, and investors should make independent decisions. No liability is assumed for direct or indirect losses.
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