Taiwan Financial Digital Assets

Taiwan’s evolving regulatory landscape presents a significant opportunity for U.S. companies specializing in blockchain technology and digital asset custody solutions. With the Financial Supervisory Commission (FSC) set to launch a Digital Asset Custody Services Business Trial in early 2025, Taiwan is taking a major step toward integrating digital assets into its regulated financial system. This development coincides with significant market growth, as Taiwan’s leading crypto exchanges reported over 50% year-over-year growth in new user registrations and a threefold increase in trading volume in 2024. This initiative aims to facilitate the entry of financial institutions into the digital asset space while prioritizing consumer protection and market integrity. The business trial is expected to inform the development of a comprehensive regulatory framework for digital asset custody services in Taiwan. U.S. companies that specialize in blockchain technology and digital asset custody solutions are well-positioned to support Taiwan’s financial institutions during this transition.

The surge in Bitcoin demand, the introduction of spot Bitcoin ETFs in the United States, and Taiwan’s more open regulatory stance are fueling increased adoption of digital assets. The top two cryptocurrency exchanges in Taiwan have reported a more than 50% increase in new registrations in the second quarter of 2024 compared to the same period in 2023, and a threefold increase in trading volume in the first half of 2024. Taiwan retail investors primarily prefer stablecoins like Tether (USDT) and major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). U.S. companies can leverage this momentum by partnering with Taiwanese financial institutions participating in the business trial. Key opportunities include providing secure custody technology and infrastructure, offering consulting services for regulatory compliance, and developing joint ventures that merge U.S. expertise with local market insights.

The application of Digital Asset Custody Services Business Trial is open from January 1 to April 30, 2025. The results and experience gained from this business trial will serve as a reference for the FSC in formulating relevant regulations and promoting related policies. Early engagement with relevant stakeholders in Taiwan and participation in this initiative could help U.S. firms influence Taiwan’s regulatory landscape while establishing a strong foothold in a rapidly expanding digital asset market.

For more information, please contact the U.S. Commercial Service in Taiwan: Kelly Lee, Commercial Specialist, Kelly.Lee@trade.gov or connect with your local U.S. Commercial Service office in the United States to schedule an appointment for a consultation.