Taiwan's Financial Supervisory Commission approves "Bitcoin custody", with KGI, Citibank, and Union Bank being the first three banks to pilot the service.

The FSC approved the trial operation of bitcoin custody by three banks, KGI, CITIC and the Federation, and reported data within six months, laying the regulatory and technical foundation for Taiwan's crypto finance. (Summary: 6 key points of the public hearing of Taiwan's Crypto Law "Virtual Asset Services Act": If the unlicensed business is involved in fraud, it will be aggravated!) (Background supplement: Taiwan's new system is on the road: accounts are frozen "cannot be withdrawn and transferred" without trading for half a year, users complain about nuisance) Taiwan's Financial Regulatory Commission approved the trial operation of crypto asset custody business by three banks, KGI, CITIC and the federation, on June 19, focusing on Bitcoin (BTC) and Ether for the first time (ETH)。 The six-month trial period will test the feasibility of combining traditional vaults with blockchain, and also provide evidence for subsequent legislation. The first batch of banks to enter and hand over report cards in six months According to reports, the three banks can hold up to about $20 million in crypto asset exposure, with a total ceiling of nearly NT$1.8 billion. Upon the expiration of the trial period, the bank is required to submit a complete report on internal control, money laundering prevention, customer complaint mechanism and business volume to the FSC. Cathay Shihua is still under review, while Taishin Bank is receiving counseling. Regulatory testing temperature, data collection and revision law The FSC announced the "Virtual Asset Custody Business" trial plan in November 2024, and received applications from four banks from January to April 2025. Officials hope to assess whether the draft Virtual Asset Services Law has been adjusted through practical data, and strive to strike a balance between innovation and risk control. Details can be found in the FSC press release. Cold wallet + private key sharding Bank-level security standards The report pointed out that the three banks will adopt a combination of offline cold wallets, private key shards and hardware security modules (HSM) to reduce hacker risks and implement multi-sign-off. KGI Bank worked with Fintech Space's AIFT team to synchronize the process with the import of information collection in accordance with Travel Rules. Banks' entry into crypto asset custody represents an additional source of service and fee income, which is also expected to boost investor confidence. Lam So-chun, General Manager of KGI Bank's Personal Finance Division, said, "Our approval of the trial programme marks an important step towards embracing fintech innovation." In the future, if stablecoins and tokenized assets are included in the supervision, on-chain pledges, mortgages and other services are expected to expand, injecting new growth momentum into Taiwan's crypto financial ecosystem. As the trial proceeds, the results of the combination of traditional banks and blockchain technology will become clearer, and the final result will become an important reference for Taiwan's formulation and improvement of crypto asset regulations. Related reports U.S. Chamber of Commerce white paper warns of "power shortage in Taiwan": unstable energy supply threatens semiconductor AI development Taiwan's big brother "virtual asset exchange TWEX" announced its listing! Fubon Group is optimistic about crypto finance, Tsai Mingzhong demonstrates buying bitcoin Huang Jenxun: NVIDIA Taiwan headquarters is located in Beishike! Shipai, Tianmu shouted "Huida housing area" ready to rise (Taiwan Financial Regulatory Commission approved "bitcoin custody", KGI, CITIC, federal 3 banks preemptively trial) This article was first published in BlockTempo "Dynamic Trend - The Most Influential Blockchain News Media".