As per Taiwan’s financial regulator, professional investors are now permitted to access foreign crypto exchange-traded funds through local brokers
As approved by the Financial Supervisory Commission, professional investors in Taiwan can now access foreign crypto exchange-traded funds through local securities firms.
This policy is intended to manage associated risks while diversifying investment options.
Due to the “complex nature of virtual assets and their significant price volatility,” the FSC’s new policy restricts access to foreign crypto ETFs to professional investors, including institutional investors, high-net-worth entities, and individual investors classified as professionals, as stated in a press release issued on Sept. 30.
Securities firms are now obligated to conduct suitability assessments for virtual asset ETF products, which their board must approve of directors.
The press release also states that firms must evaluate the client’s expertise and experience in virtual assets and related product investments to determine the suitability of the investment before making initial purchases.
The FSC also intends to continually monitor the implementation of these measures to protect the interests of investors and improve the “competitiveness of securities firms.”
Taiwan has joined many markets that acknowledge the demand for crypto-linked investment products. However, regulatory caution remains high due to investor protection and volatility concerns.
Earlier this year, FSC Chairman Huang Tianzhu expressed his growing apprehensions regarding fraudulent crypto activities and announced that crypto exchanges and foreign currency merchants would be subject to stringent administrative penalties.
He reiterated that cryptocurrencies are not correlated with the real economy and cautioned against the increasing risks and investment disputes associated with unregulated overseas investments.