Taiwan Financial Supervisory Commission (FSC), professional investors spot Bitcoin $63,953 It announced that it allowed investors to invest in cryptocurrency exchange-traded funds, including ETFs, through reauthorization. This development comes as Chinese legislators recommend a cautious crypto conversion in the face of increasing demand for spot Bitcoin ETFs in the markets.
New Regulations for Crypto ETFs
In its current announcement, the FSC said it has begun a consultation process with the Securities Business Association of the Republic of China to review the investment risks of foreign crypto ETFs. This decision was taken in line with the goal of providing investors with a variety of product options and increasing the reauthorization business of securities firms.
The Role of Professional Investors
The FSC recommended that professional investors invest in these high-risk ETFs through reauthorization. This development, which occurred after Taiwan Mobile received a virtual asset service provider (VASP) license in the country, is considered an important step for the market. “It is important that professional investors manage these investments, taking into account their level of knowledge and experience,” an FSC official said in his comment.
Restrictions for Investors
Initially, retail investors in Taiwan will not be able to access cryptocurrency ETFs. Those who will invest include institutional investors, high net worth legal entities and individual investors with significant asset portfolios.
Securities companies must obtain board approval before providing access to spot Bitcoin ETFs. In addition, customers’ knowledge and experience on virtual assets are evaluated and their first investments are facilitated.
For non-institutional customers, a risk warning letter will be required to be signed prior to the first purchase of the cryptocurrency ETF. In addition, securities firms are required to provide detailed product information about the ETF and regular virtual asset training.
Taiwan FSC will closely monitor the implementation of these measures and continuously improve regulations to enhance the competitiveness of securities firms while protecting investors.
Latest Developments and Requests
While the demand for spot Bitcoin ETFs is increasing in the USA, the announcement of the Taiwan FSC may reflect this trend in Taiwan. Additionally, while investors in China turned to Bitcoin due to the fragility of the economy, former Chinese Finance Minister Lou Jiwei stated that developments in the crypto sector should be closely examined. “Cryptocurrencies may have negative effects on global financial stability,” Jiwei said.
These developments are seen as part of Taiwan’s efforts to create a more regulated and secure environment in the cryptocurrency market.
The new decision taken by Taiwan FSC aims to make cryptocurrency investment more common among professional investors. Investors will have the opportunity to trade in a more informed and protected environment when investing in such ETFs. Additionally, this step could increase Taiwan’s competitiveness in the international cryptocurrency market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
