Taiwan regulator approves foreign crypto ETFs for professional investors

Taiwan’s financial regulator has authorized professional investors to access funds traded on foreign crypto exchanges through local brokers.

Professional investors in Taiwan will now be able to access foreign crypto exchange-traded funds through local securities firms, as approved by the Financial Supervisory Commission, to diversify investment options while managing associated risks.

According to a Sept. 30 press release, the FSC’s new policy limits access to foreign crypto ETFs to professional investors, including institutional investors, high-net-worth institutions, and individual investors who are classified as professional due to the “complex nature and complex nature of virtual assets.” . “There is significant price volatility.”

Securities firms are now required to create suitability assessments for virtual asset ETF products, which must be approved by their boards of directors. Before initial purchases, firms should “assess whether the client has the necessary expertise and experience in virtual asset and related product investments to determine the suitability of the investment,” the press release states.

The FSC also said it plans to constantly monitor the implementation of these measures, which aim to protect investor interests while improving the “competitiveness of securities firms”.

Taiwan joins a growing number of markets recognizing the demand for crypto-related investment products, but regulatory vigilance remains high due to concerns about volatility and investor protection.

Earlier this year, FSC Chairman Huang Tianzhu signaled that strict administrative penalties would be imposed on crypto exchanges and foreign exchange traders, noting growing concerns about fraudulent crypto activities. He reiterated that cryptocurrencies have no relationship to the real economy and warned of risks associated with increasing investment disputes and unregulated overseas investment.