Taiwan regulator approves foreign crypto ETFs for professional investors

Taiwan’s financial regulator has granted approval for professional investors to access foreign crypto exchange-traded funds (ETFs) through local brokerage firms. This decision by the Financial Supervisory Commission (FSC) aims to broaden investment options while managing associated risks.

In a press release dated September 30, the FSC stated that this new policy restricts access to foreign crypto ETFs to professional investors, which includes institutional investors, high-net-worth individuals, and certain individual investors deemed professionals due to the “complex nature of virtual assets and their significant price volatility.”

Securities firms are now mandated to conduct suitability assessments for virtual asset ETF products, which must receive approval from their boards of directors. Before any initial purchases, firms must evaluate whether clients possess the necessary expertise and experience in virtual asset investments to ensure the appropriateness of the investment.

The FSC indicated that it will continuously monitor the implementation of these measures to protect investor interests while enhancing the competitiveness of securities firms. Taiwan is joining a growing number of markets acknowledging the demand for crypto-related investment products, even as regulatory caution remains high due to concerns over volatility and investor protection.

Earlier this year, FSC Chairman Huang Tianzhu emphasized rising worries about fraudulent activities in the crypto space, signaling that strict penalties would be enforced on crypto exchanges and foreign currency merchants. He also noted that cryptocurrencies lack correlation with the real economy and warned of increasing investment disputes and risks linked to unregulated overseas investments.