Taiwan’s Financial Supervisory Commission (FSC) announced this Monday that it will allow professional investors in the country to invest in exchange-traded investment funds (ETFs) of “foreign” virtual assets.
According to the statement, published on September 30, the FSC stated that the measure aims to expand “product options” and “open investment channels for professional investors.” This, in order to improve the competitiveness of the Taiwanese financial market.
However, the FSC noted that it will continue to supervise the crypto market and emphasized risk management and regulatory compliance.
«The Financial Supervisory Authority will continue to pay attention to the handling of businesses recommended by securities companies. In addition, it will continue to improve relevant regulations to ensure the rights and interests of investors and improve the competitiveness of securities companies.” The statement indicated.
It is important to note that Taiwan has traditionally maintained a very conservative stance towards cryptocurrencies. This, due to strong concerns related to risks such as fraud and volatility of this asset class.
For reference, the FSC has issued numerous warnings and implemented strict anti-money laundering measures, specifically targeting Cryptocurrency exchanges.
Additionally, the Taiwanese government has supported initiatives such as the “FinTech Regulatory Sandbox”, which allows startups and institutions in the country to test new digital business models, without the need for complete regulatory compliance.
Notably, Taiwan’s recent regulatory change to support cryptocurrency ETFs aligns with similar policies in major global financial centers such as Hong Kong and Singapore. For reference, since April this year, Hong Kong has approved six spot Bitcoin ETFs.
Institutional investors first to access cryptocurrency ETFs in Taiwan
It is important to note that according to the Taiwanese regulator’s statement, those who wish to invest must meet specific criteria.
“Professional investors include professional institutional investors, legal entities with high net worth investments, high net worth clients, legal entities or funds that are professional investors, and individuals who are professional investors.” The FSC noted.
Additionally, to invest in foreign ETFs, the country’s securities companies must establish an “suitability system” approved by their board of directors. As part of this process, they must also evaluate the entity’s experience and knowledge in investing in cryptocurrencies.
Cryptocurrency ETFs are currently classified as “high-risk investments” in Taiwan, and companies wishing to manage them must comply with FSC regulations regarding professional investors.
Furthermore, although Taiwan is beginning to embrace cryptocurrency ETFs, its central bank has remained cautious about the launch of its Central Bank Digital Currency (CBDC).
For reference, Yang Chin-long, the current governor of the Central Bank of Taiwan, stated in July that “there is no rush to launch a CBDC.”
However, even though Taiwan is developing a CBDC protocol for retail payments and exploring a trial concept for wholesale CBDCs, the central bank’s approach currently remains aligned with the government’s digital policy objectives.
Notably, since their launch in January, Bitcoin spot ETFs have attracted significant attention, amassing substantial amounts from institutional investors. For reference, currently over 1,000 institutional investors have exposure to the emerging crypto industry through these popular ETFs.
According to experts, Taiwan’s recent decision could pave the way for retail investors to access these digital products in the future.
Do you want to always be updated in the world of cryptocurrencies? Subscribe now to the CriptoTendencia WhatsApp channel! Here you will instantly receive the most relevant information about Bitcoin, Altcoins, DeFi, NFTs, Blockchain and the Metaverse.
Related
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
