Union Bank's direct investment in MaiCoin rejected by FSC
Union Bank previously resolved in a board meeting last August to acquire 5.356 million shares for a total of USD 27.817 million (approximately NTD 850 million), representing about a 9.67% stake in "Modernity Financial Holdings, Ltd," the offshore holding company of the Taiwan-based virtual asset service provider MaiCoin. The plan also originally intended to transfer all shares held by its subsidiary, Union Venture Capital, to the bank.
However, Union Bank announced on May 11 that, following an interpretation by the FSC, it was determined that MaiCoin's offshore holding company is not a finance-related business and lacks substantive operational facts; therefore, this direct investment project will not be executed. Union Bank stated that this change has no material impact on the company's finances and operations.
Article 74 of the Banking Act becomes the key to the FSC's rejection
The main point of contention regarding the rejection of Union Bank's direct investment in MaiCoin is the regulation under Article 74 of the "Banking Act."
The article stipulates that commercial banks, whether investing in finance-related or non-finance-related businesses, must obtain approval from the competent authority, and the investee must possess substantive operational facts. If the investment target is a non-finance-related business, the bank's shareholding ratio shall not exceed 5% of the company's issued shares by law.
After internal discussions, the FSC determined that Modernity Financial Holdings, Ltd, an offshore holding company established in the British Cayman Islands, is not a finance-related business and lacks substantive operations itself, thus failing to meet the investment prerequisites of Article 74 of the "Banking Act."
Union Bank steadily enters the crypto space, holding custody services and co-branded cards
Following the FSC's promotion of the draft "Virtual Asset Service Act" and the VASP licensing system, Union Bank is one of the more active banks in laying out its presence in the crypto space.
Not only did it officially launch virtual asset custody services in September 2025, becoming the first financial institution in Taiwan to be approved for such operations, but it also recently launched the first credit card combined with cryptocurrency rewards, where rewards from card spending can be directly converted into virtual currencies such as Bitcoin, ETH, USDT, and $USDC.
Union Bank President Hsu Wei-wen even stated at a recent press conference that he believes the bank's virtual asset custody business will be promoted in four stages. The initial phase focuses on assets from trading platforms, followed by expansion to professional institutional investors and high-net-worth individuals, and ultimately looking toward the custody needs of crypto ETFs that may be issued by investment trust companies in the future.
Although Union Bank's further attempt to directly invest in MaiCoin has fallen through, according to reports from the "Economic Daily News" and "Commercial Times," even if direct equity participation is not possible, it is understood that the investment plan will be carried out by personal affiliates of Union Bank's major shareholders, and it is expected that the original cooperation model between the two parties will remain unaffected. Union Bank also emphasized that it absolutely respects the determination made by the competent authority.
(The above content is excerpted and reprinted with authorization from our partner "Crypto City"; original link)