Taiwan FSC Greenlights Foreign Crypto ETFs for Professional Investors
Taiwan joins other financial hubs like Hong Kong and Singapore in recognizing the growing demand for digital asset investments
Taiwan’s financial regulator, the Financial Supervisory Commission (FSC), made an official decision on September 30, allowing foreign cryptocurrency exchange-traded funds (ETFs) to be accessed by professional investors.
This move opens a new avenue for institutional and high-net-worth individuals, recognized based on their financial expertise, to invest in foreign crypto assets while remaining in compliance with strict regulatory guidelines.
Taiwan FSC Limits Crypto ETFs to Professionals
According to the FSC’s latest policy, foreign crypto ETFs are restricted exclusively to professional investors, which includes institutional investors, high-net-worth individuals, and those with recognized financial expertise.
The FSC emphasized that local brokers and securities firms are required to conduct thorough assessments to ensure that their clients possess the necessary experience and knowledge before investing in these ETFs.
To enforce this policy, the FSC outlined that local brokers and securities firms must thoroughly assess their clients’ financial expertise before granting access to these crypto investment products.
The FSC also emphasized its ongoing commitment to monitoring the implementation of these policies to manage risks effectively.
Taiwan joins other financial hubs like Hong Kong and Singapore in recognizing the growing demand for digital asset investments, while maintaining a cautious stance due to risks such as market volatility, fraud, and money laundering.
Taiwan has long held strict regulations on digital assets, reflecting its concerns about market instability and financial crime.
In line with its regulatory approach, Taiwan has taken major steps to enforce Anti-Money Laundering (AML) measures, particularly targeting cryptocurrency exchanges.
In July, the government tightened AML regulations for virtual asset service providers, threatening fines of up to NT$5 million (approximately $153,817) or up to two years in prison for non-compliance.
