Taiwan Financial Regulator Approves Access to Foreign Crypto ETFs for Professional Investors

Taiwan Financial Regulator Approves Access to Foreign Crypto ETFs for Professional Investors

Professional investors in Taiwan are now permitted to invest in foreign cryptocurrency exchange-traded funds (ETFs) through local brokers, following a recent decision by the Financial Supervisory Commission (FSC). This move aims to broaden investment opportunities while ensuring risk management for those engaging with volatile virtual asset markets.

In a press release dated September 30, the FSC outlined that access to these foreign crypto ETFs will be restricted to professional investors. This includes institutional investors, high-net-worth entities, and individuals who have been classified as professional investors, given the complexities and high price volatility associated with virtual assets.

Local securities firms facilitating these investments are required to implement suitability assessments for their clients. These assessments, which need board approval, will determine whether potential investors possess the necessary expertise and experience in virtual assets and related products. Before any initial purchase, firms must ensure clients fully understand the risks involved in such investments.

The FSC further noted that it will continue to monitor the application of these new rules, with the aim of protecting investor interests and strengthening the competitiveness of Taiwan’s securities firms in global markets.

With this decision, Taiwan joins a growing list of jurisdictions recognizing the rising demand for crypto-related investment products. However, regulatory authorities remain cautious due to concerns over price volatility and investor protection.

Earlier this year, FSC Chairman Huang Tianzhu underscored the commission’s concerns over fraudulent activities in the crypto space. He emphasized the importance of strict penalties for crypto exchanges and unregulated foreign currency merchants, reiterating that cryptocurrencies lack a direct connection to the real economy and cautioning against the rising risks and disputes linked to overseas investments.