🌎 Taiwan Approves Foreign Crypto ETFs for Professional Investors

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

Professional investors in Taiwan can now access foreign crypto exchange-traded funds (ETFs) through local securities firms. This move, approved by the Financial Supervisory Commission (FSC), aims to diversify investment options while managing associated risks.

New Policy for Professional Investors

According to a Sept. 30 press release, the FSC’s new policy limits access to foreign crypto ETFs to professional investors. This group includes institutional investors, high-net-worth entities, and individual investors classified as professionals due to the “complex nature of virtual assets and their significant price volatility.”

Suitability Assessments

Securities firms are now required to establish suitability assessments for virtual asset ETF products, which must be approved by their board of directors. Prior to initial purchases, firms also “must 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 reads.

Regulatory Oversight

The FSC plans to continuously monitor the implementation of these measures to safeguard investor interests while enhancing the “competitiveness of securities firms.” Taiwan joins a growing number of markets recognizing the demand for crypto-linked investment products, although regulatory caution remains high amid concerns over volatility and investor protection.

Concerns Over Fraudulent Activities

Earlier this year, FSC Chairman Huang Tianzhu highlighted increasing concerns regarding fraudulent crypto activities. He signaled that strict administrative penalties would be enforced on crypto exchanges and foreign currency merchants. Huang reiterated that cryptocurrencies have no correlation to the real economy and warned of rising investment disputes and risks associated with unregulated overseas investments.