Taiwan Approves Foreign Crypto ETFs

Taiwan’s financial regulatory authority has approved a measure allowing professional investors to purchase foreign cryptocurrency exchange-traded funds (ETFs) through local brokers.

According to new regulations from the Financial Supervisory Commission (FSC), professional investors in Taiwan can now trade foreign cryptocurrency ETFs via local securities firms. This initiative aims to broaden investment opportunities while better managing associated risks.

The FSC’s press release on September 30th specifies that only professional investors are permitted to buy foreign cryptocurrency ETFs. Given the “complexity and high price volatility of virtual assets,” this category includes institutional investors, high-net-worth entities, and private investors classified as professionals.

Securities firms are required to establish qualification tests for virtual asset ETF products, which must be approved by their boards. Before any purchase, firms must assess whether clients possess sufficient knowledge and experience in virtual asset investments to determine the suitability of the investment.

Interestingly, Taiwan is not rushing to develop a central bank digital currency (CBDC), as the central bank has not set a timeline. The FSC will continue to monitor the implementation of these rules to protect investors’ interests while enhancing the competitive position of securities firms.

Despite regulatory caution due to concerns over volatility and investor protection, Taiwan, like other markets, is capitalizing on the growing demand for cryptocurrency-related investment products.

Sentiment: Positive