Taiwan Approves Five-Bank, Four-Stage Virtual Asset Custody Pilot
Virtual asset custody involves private-key security, asset segregation and anti-money laundering controls, making it a critical foundation for integrating cryptocurrency with traditional finance. Taiwan’s Financial Supervisory Commission launched a thematic pilot program on November 28, 2024, and has approved five participants: KGI Bank, CTBC Bank, Cathay United Bank, Taishin Bank and Union Bank of Taiwan. The program aims to use banks’ internal controls to reduce risks associated with trading platforms.
As of April 22, 2026, the pilot was proceeding in four stages. Banks will first hold assets for trading platforms, then expand services to professional legal entities, institutional investors and high-net-worth individuals, before finally providing custody for cryptocurrency ETFs managed by investment trust companies. Union Bank of Taiwan became the first to launch the service on September 9, 2025, and holds a 9.67% stake in Modernity Financial Holdings, MaiCoin’s parent company. Taiwan has about 2 million cryptocurrency accounts.
All Coverage
2 original reportsThe Backstory
The history behind this eventTaiwan Regulator Details Crypto Custody Risks, Review Priorities
Taiwan’s banks are moving beyond payments and exchange services into virtual-asset custody, a business where control rests with private keys rather than conventional account ledgers. The Financial Supervisory Commission launched a thematic pilot on Nov. 28, 2024, while lawmakers passed the Virtual Asset Service Act on June 30, 2026. The shift matters because a compromised key, weak asset segregation or an outage can translate directly into client losses, making bank-grade controls central to broader institutional adoption.
The Trust Association of R.O.C. drew more than 100 financial professionals to a July 27, 2026 seminar on custody rules and operations. The FSC outlined six review areas covering governance, internal controls, private-key management, client-asset segregation, anti-money-laundering safeguards and cyber resilience. Speakers highlighted three core risks: key theft or misuse, commingling of assets, and legal or technology failures. KGI Bank also detailed its application process and operating experience, including cold-wallet arrangements, as brisk questioning underscored strong industry interest.
Subscribe to Mark Radar Weekly
Every Friday, the week's strongest signals in your inbox. Unsubscribe anytime.
If you search news on Google, you can set Mark Radar as a preferred source—our coverage will show up more often in your results. Set as preferred source on Google →