Cryptocurrencies

Taiwan approves digital asset ETFs for professional investors

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Taiwan’s Financial Supervisory Commission (FSC) has officially permitted professional investors to engage with foreign virtual asset exchange-traded funds (ETFs).

This decision, announced on September 30, aims to expand investment opportunities and improve Taiwan’s financial market competitiveness by providing more options for professional investors.

The FSC has emphasised that it will continue to prioritise regulatory compliance and risk management while monitoring the digital asset market closely.

The FSC’s cautious approach reflects Taiwan’s traditional stance toward digital assets such as cryptocurrencies, with a focus on minimising risks like volatility and fraud.

Strict Anti-Money Laundering (AML) regulations have been applied to cryptocurrency exchanges in the region, further highlighting the government’s commitment to protecting investors.

By opening access to digital asset ETFs, Taiwan aligns itself with other global financial hubs, such as Hong Kong and Singapore, which have also explored similar investment opportunities.

However, access to these digital asset ETFs will be limited to professional investors, ensuring that only individuals and institutions with significant experience and financial knowledge can participate.

This measure is intended to balance the potential benefits of these high-risk investments with the need to protect less experienced investors from exposure to market volatility.

While Taiwan is showing interest in digital asset ETFs, its central bank remains cautious about introducing a central bank digital currency (CBDC).

Yang Chin-long, the president of Taiwan’s Central Bank, has stated that the institution favors a gradual approach to CBDC development.

The bank is currently conducting research and exploring proof-of-concept projects for wholesale CBDCs but has not set a timeline for a broader launch.

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