As an analyst with over two decades of experience in the financial sector, I have witnessed the evolution of the digital asset industry from a distant spectator. The recent news about Taiwan’s Financial Supervisory Commission (FSC) encouraging local banks to pilot digital asset custody services is a significant stride towards integrating crypto assets into traditional finance.
It’s said that the financial regulatory body from Taiwan is contemplating testing out institutional cryptocurrency safekeeping services, and they are examining local banks as potential participants in this trial program.
Taiwan Looking To Integrate Crypto Assets Into Economy
As a financial analyst, I’m sharing that I’ve learned about the Financial Supervisory Commission (FSC) of Taiwan actively advocating for local banks to explore and pilot the provision of digital asset custody services.
By Q1 of 2025, the regulatory body intends to invite financial institutions that are keen on exploring digital asset custody services, to submit their applications. Already, three banks have shown an inclination towards joining this trial initiative.
Information obtained from reliable sources indicates that potential participants in the trial are expected to clearly define the specific digital assets they intend to manage, for instance, Bitcoin (BTC), Ether (ETH), or Dogecoin (DOGE), among several options available.
As a crypto investor, I’m constantly reminded of the immense size of our industry, with a total market capitalization surpassing an astounding $2.2 trillion. In light of this, various security-focused directives have been established for institutions that wish to participate, ensuring a safer and more reliable environment for all investors like myself.
Specifically, key organizations are expected to collaborate by pooling their respective user groups, which include professional investors, individual investors, digital asset firms, etc. Moreover, they should establish robust security systems and employ strategies to deter money laundering activities.
Furthermore, it’s essential that the involved institutions implement safeguards to prevent handling cryptocurrencies originating from illicit sources. Neglecting this could lead to government agencies confiscating their digital wallets containing crypto assets.
As stated in the document, Hu Zehua, who holds the position of Director at FSC, indicated that the regulatory body may disclose additional details about the upcoming trial a minimum of 15 days before they start accepting applications. Moreover, it was mentioned that the FSC intends to solicit public opinions on the planned trial and make any necessary adjustments based on the feedback received.
The latest regulations in Taiwan suggest that the country is gradually becoming more open towards digital assets. For example, on September 30, the Financial Supervisory Commission allowed institutional investors to invest in foreign crypto exchange-traded funds (ETFs) through a re-entrustment procedure.
Crypto Ecosystem Coming Of Age In Asia
As a crypto investor, I’m thrilled to see Taiwan stepping up its game in the digital asset sector. Its recent support for cryptocurrencies underscores the growing importance of this industry as a key driver of our national economy. Yet, it’s not just Taiwan that’s embracing the crypto trend; other Asian nations are also adopting a pro-crypto stance, demonstrating the region’s forward-thinking approach to digital finance.
It appears that neighboring Japan could be re-evaluating its current rules regarding digital assets. This potential reassessment might result in reduced taxation on cryptocurrency earnings and the endorsement of Exchange-Traded Funds (ETFs).
In simpler terms, it means that a significant player in the cryptocurrency world, the United Arab Emirates (UAE), has declared that transactions involving digital assets, such as converting one type of digital currency into another or transferring them, will no longer be subject to Value Added Tax (VAT). This move is interpreted as an attempt by the UAE’s financial authority to entice cryptocurrency investments into their country.
Nevertheless, financial regulators express reservations about the risks associated with cryptocurrencies for individual investors. A study revealed that around 70% of South Korean crypto trading platforms were unable to refund user funds after ceasing operations. Currently, a single Bitcoin is being traded at $62,303, marking a minor decrease of 0.1% over the past day.
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2024-10-10 15:12