Taiwan's crypto scene welcomes newcomers! EasyCard is connecting with virtual assets, Federal Bank: Future investment trusts may issue crypto ETFs

Taiwan opens virtual-asset custody in banks. Federal Bank plans four phases and hopes to issue cryptocurrency ETFs in the future; One Card combines with credit cards to enter the crypto industry and promote green finance; MaiCoin also hopes for the law on specialized legislation to be passed as soon as possible, accelerating the integration of finance and tokenization.

Federal Bank: Taiwan’s asset management companies may issue crypto ETFs in the future

The Financial Supervisory Commission has recently approved 5 banks to pilot virtual asset custody. With the addition of the “Virtual Asset Service Act,” Taiwan’s crypto market has opened a new chapter! At yesterday’s press conference (4/22), Federal Bank’s General Manager Xu Weiwen revealed that bank custody of virtual assets (crypto assets) will be carried out in four stages:

The first stage focuses on custody of virtual assets on trading platforms; the second expands to corporate targets such as professional and institutional investors; the third targets natural persons such as high-net-worth clients; the fourth looks to future custody needs for crypto ETFs that investment trusts may issue.

As the draft of the “Virtual Asset Service Act” has passed review by the Executive Yuan, traditional financial institutions are also gearing up and exploring ways to lay out virtual-asset business—such as acquiring local firms or building their own trading platforms. Federal Bank tends to invest and cooperate rather than merge, and it remains open to future cooperation opportunities.

• Related report: Taiwan’s specialized legislation is expected to pass this year! Rumors say four financial holding companies are interested in acquiring exchanges; MaiCoin and HOYA BIT are under scrutiny

One Card enters the crypto space by combining with credit cards to promote green finance

At the same time, One Card is also entering the crypto space through the new credit card launched by Federal Bank. In the co-branded cards from Federal Bank and MaiCoin, One Card plays the role of the exclusive electronic ticket partner. By linking virtual assets and green finance through credit cards, the official states that card rewards can be exchanged for Bitcoin ($BTC), Ethereum ($ETH), Tether ($USDT), and $USDC , among others.

One Card has launched co-branded cards with an automatic synchronization feature for ticket cards, extending virtual-asset applications to mass transit and small-spend consumption scenarios. To encourage low-carbon living, users who complete specified conditions can receive stored-value funds and green points. Successfully turning carbon-reduction actions into virtual assets, it builds a brand-new circular payments ecosystem.

Blockchain and traditional finance are complementary, not a replacement

In a media interview, MaiCoin Chairman Liu Shih-wei said that in the future, whether through tokenization, stablecoins, or other methods, virtual assets will have deeper connections and integration with traditional finance. In the future, consumers will only need to enjoy almost frictionless trading experiences and the associated benefits, without having to worry about the underlying technology—this is the highest state of technology.

MaiCoin General Manager Chen Ming-hui told “Crypto City” that stablecoins on blockchain and traditional financial institutions are in a relationship that is “complementary,” not “mutually replacing” each other.

From ECPay’s initial trial of Taiwan-dollar-backed coins in 2018 to 2026, when geopolitical changes and rising external attention toward stablecoins significantly increase, she believes that cross-border stablecoin market demand has already changed greatly. Everyone is thinking about how, when holding Taiwan dollars abroad, they can achieve painless payments and reduce costs—that is the focus of future financial payments.

Tokenization faces regulatory challenges; the industry hopes specialized legislation can pass as soon as possible

If the four major financial core institutions—such as stock exchanges or futures exchanges—want to connect blockchain technology for tokenization, the biggest obstacle remains regulation.

Chen Ming-hui said that since blockchain itself operates 24/7, financial institutions entering tokenization must think about adjusting traditional mechanisms such as opening and closing times and after-hours trading. It depends on how fast the competent authorities move, but she believes that after the specialized law “Virtual Asset Service Act” passes, efforts will become even more proactive.

After Peng Jinlong took office as Chair of the Financial Supervisory Commission, the speed of drafting specialized legislation and the flexibility in responding to crypto regulation have clearly improved.

Chen Ming-hui is optimistic about the current draft of the “Virtual Asset Service Act,” which references the United States, Japan, South Korea, and Singapore. She believes it is reasonable and retains flexibility, and hopes to complete the legislation as soon as possible so that financial institutions and the blockchain industry can truly take the next step.