The Financial Supervisory Commission (FSC) of Taiwan has announced that it will grant permission for professional investors to invest in spot Bitcoin 
$94,952 ETFs through a reauthorization process. This decision follows cautious recommendations for a crypto transformation by Chinese legislative bodies in response to increasing demands for spot Bitcoin ETFs in the markets.
New Regulations for Crypto ETFs
In its current announcement, the FSC has initiated a consultation process with the Securities and Futures Bureau of the Republic of China to review the investment risks of foreign crypto ETFs. This decision aims to provide a variety of product options for investors and to enhance the reauthorization process for securities firms.
The Role of Professional Investors
The FSC has suggested that professional investors manage investments in these high-risk ETFs through reauthorization. This development is considered a significant step for the market following Taiwan Mobile obtaining a virtual asset service provider (VASP) license in the country. An FSC official commented, “It is crucial for professional investors to manage these investments considering their level of knowledge and experience.”
Restrictions for Investors
Initially, retail investors in Taiwan will not have access to crypto ETFs. Those permitted to invest will include institutional investors, high-net-worth individuals, and individual investors with substantial asset portfolios.
Securities firms must obtain board approval before providing access to spot Bitcoin ETFs. Furthermore, initial investments will be facilitated by assessing customers’ knowledge and experience regarding virtual assets.
Non-institutional clients will be required to sign a risk warning letter before their first purchase of crypto ETFs. Additionally, securities firms must provide detailed product information about the ETFs and are mandated to conduct regular training on virtual assets.
Recent Developments and Demands
As demand for spot Bitcoin ETFs rises in the U.S., the announcement from Taiwan’s FSC could reflect this trend in Taiwan as well. Moreover, amid economic fragility, investors in China are turning to Bitcoin, while former Chinese Finance Minister Lou Jiwei emphasized the need for careful examination of developments in the crypto sector, stating, “Cryptocurrencies could have negative impacts on global financial stability.”
These developments are seen as part of Taiwan’s efforts to create a more regulated and secure environment in the cryptocurrency market.
The new decision by Taiwan’s FSC aims to make crypto investment more common among professional investors. Investors will have the opportunity to operate in a more informed and protected environment when investing in such ETFs. Additionally, this move could enhance Taiwan’s competitiveness in the international cryptocurrency market.
