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.