Taiwan Opens Doors to Foreign Crypto ETFs, but Cautiously
Taiwan’s financial regulator, the Financial Supervisory Commission (FSC), has taken a step towards embracing cryptocurrencies, allowing professional investors to access foreign cryptocurrency exchange-traded funds (ETFs).
A Cautious Embrace
This move opens a new avenue for institutional investors, high-net-worth individuals, and other financial professionals to invest in crypto assets. However, the FSC is taking a cautious approach, restricting access to these ETFs to only those deemed to have the necessary financial expertise.
This cautious stance reflects Taiwan’s concern about market instability and financial crime associated with digital assets.
Prioritizing Investor Safety
The FSC emphasizes that local brokers and securities firms must conduct thorough assessments to ensure that their clients understand the risks involved before investing in crypto ETFs.
Taiwan has been cracking down on crypto-related financial crime, enforcing stricter Anti-Money Laundering (AML) measures and requiring crypto providers to register for AML compliance.
CBDC Still on the Back Burner
While Taiwan is cautiously embracing foreign crypto ETFs, it remains hesitant about launching a central bank digital currency (CBDC). The Central Bank of the Republic of China is adopting a gradual approach, prioritizing careful consideration and ensuring any digital currency fits within the broader policy framework.
