Taiwan Financial Regulator Greenlights Foreign Crypto ETFs for Professionals

Taiwan’s Financial Supervisory Commission (FSC) has officially given the green light for professional investors to access foreign crypto exchange-traded funds (ETFs) through local brokers. This move aims to diversify investment opportunities while ensuring risk management remains a priority.

On September 30, the FSC announced that only professional investors, including institutional investors, high-net-worth entities, and individual professionals, would be eligible to invest in foreign crypto ETFs. This restriction reflects the “complex nature of virtual assets and their significant price volatility,” as stated by the FSC.

To ensure suitability, local securities firms must perform assessments on clients before facilitating their investments. The firms’ board of directors must approve any virtual asset ETF products, and prior to initial purchases, companies must assess whether clients possess sufficient expertise and experience in related investments.

Striking a Balance Between Innovation and Caution

As the demand for crypto-related products grows globally, Taiwan joins other markets in cautiously embracing these new financial instruments. The FSC has expressed its commitment to safeguarding investor interests while boosting the competitiveness of local securities firms. They plan to closely monitor the implementation of these policies to balance innovation with investor protection.

This development places Taiwan among the growing number of nations recognizing the increasing interest in crypto-linked investments, even as regulators proceed with caution due to concerns over volatility and investor security.