Taiwan’s Financial Supervisory Commission (FSC) has approved professional investors to utilize local brokers to access foreign crypto exchange-traded funds, according to a press release on September 30, 2024.
The latest policy revision allows professional investors to invest in foreign virtual asset ETFs by delegating their investment decisions or management to a third party, such as a sub-brokerage or a fund manager specializing in virtual assets. This initiative aims to diversify product offerings and enhance the re-entrustment business of the country’s securities firms.
Due to the high investment risks involved, the FSC has restricted the offering of crypto-related ETFs to professional investors such as institutional investors, high-net-worth legal entities, and experienced high-asset clients.
In Taiwan, professional investors can now utilize local securities firms approved by the FSC to access foreign crypto exchange-traded funds, allowing them to diversify their investment options while effectively managing associated risks.
Securities firms must set up a system to assess clients’ understanding and experience with virtual asset ETFs before allowing them to invest. They also need to provide regular education and training for their staff on virtual assets. Additionally, clients, except for professional institutional investors, must sign a risk disclosure statement before making their first investment.
The FSC is committed to consistently overseeing enforcement actions to protect investor interests and boost securities firms’ competitiveness, ensuring a secure regulatory environment for all stakeholders.
Taiwan is part of the growing number of markets recognising the demand for cryptocurrency investment products. Regulatory vigilance remains high due to concerns about instability and investor protection.
On September 26, 2023, the FSC released comprehensive guidelines for cryptocurrency platforms operating in the country to bolster regulatory oversight, protect customer interests, and foster transparency. Key aspects include safeguarding assets, clear listing and delisting criteria for virtual assets, and enhanced information disclosure, all contributing to market stability.
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