Federal Bank's investment in MaiCoin falls through! The key reason the Financial Supervisory Commission rejected it is the "overseas parent company's" operational status.

Federal Bank Plans to Invest 850 Million Yuan in MaiCoin’s Overseas Holding Company, Rejected by the Financial Supervisory Commission Due to Lack of Substantial Operations. The Investment Will Be Replaced by a Major Shareholder, and Federal Bank States That the Existing Cryptocurrency Business Cooperation Will Not Be Affected.

Federal Bank’s Direct Investment in MaiCoin Rejected by the FSC

In August last year, Federal Bank’s board of directors resolved to acquire 5.356 million shares, representing approximately 9.67% of Taiwan virtual asset service provider MaiCoin’s overseas parent company, “Modernity Financial Holdings, Ltd,” with a total amount of USD 27.817 million (about NT$ 850 million). The plan was also to transfer all shares held by its subsidiary Federal Venture Capital to the bank.

However, yesterday (5/11), Federal Bank announced that, after clarification from the FSC, it was determined that MaiCoin’s overseas parent company is not engaged in financial-related business and has no substantial operational facts. Therefore, this direct investment will not be executed. Federal Bank explained that this change will not have a significant impact on the company’s finances or operations.

Banking Act Article 74 Becomes the Key to the FSC’s Rejection

The main reason for Federal Bank’s rejection of the direct investment in MaiCoin is the regulation under Banking Act Article 74.

This law stipulates that commercial banks, whether investing in financial or non-financial related businesses, must obtain approval from the competent authority, and the invested entity must have actual operational facts. If the investment target is a non-financial related business, the bank’s shareholding ratio must not exceed 5% of the company’s issued shares.

The FSC, after internal discussion, determined that****Modernity Financial Holdings, Ltd is an overseas holding company established in the British Cayman Islands, not engaged in financial-related business, and has no operational facts. Therefore, it does not meet the investment prerequisites of Article 74 of the Banking Act.

Source: National Law Database, Banking Act Article 74 Regulations

Federal Bank Steadily Advances into the Cryptocurrency Space, Holding Custody Business and Co-branded Cards

Following the FSC’s promotion of the “Virtual Asset Service Law” draft and the virtual asset service provider (VASP) licensing system, Federal Bank is one of the more proactive banks in the crypto space.

Not only has it officially launched virtual asset custody services in September 2025, becoming the first financial institution in Taiwan approved to operate, but it has also recently introduced its first credit card with cryptocurrency rewards, where cardholders can directly exchange rewards for Bitcoin, Ethereum, Tether, and $USDC virtual currencies.

Federal Bank General Manager Xu Weiwen also stated at a recent press conference that he believes the bank’s virtual asset custody business will be promoted in four stages. Initially focusing on trading platform assets, then expanding to professional legal entities and high-net-worth individuals, and ultimately considering the potential demand for crypto ETF custody issued by investment trusts in the future.

Related Reports:
Taiwan’s Crypto Scene Turns a New Page! EasyCard Connects to Virtual Assets, Federal Bank: Future Investment Trusts May Issue Crypto ETFs

Although Federal Bank’s further attempt to directly invest in MaiCoin has fallen through, according to reports from the Economic Daily and the Commercial Times, even if direct shareholding is not possible, it is understood that the investment plan will be carried out by a related-party enterprise of the major shareholder of Federal Bank, and it is expected that the existing cooperation mode will remain unaffected. Federal Bank also emphasized that it fully respects the regulatory authority’s decision.