Taiwan’s monetary regulator has licensed skilled traders to entry international crypto exchange-traded funds via native brokers.
Skilled traders in Taiwan can now entry international crypto exchange-traded funds via native securities corporations, as authorized by the Monetary Supervisory Fee to diversify funding choices whereas managing related dangers.
In response to a Sept. 30 press launch, the FSC’s new coverage limits entry to international crypto ETFs to skilled traders, together with institutional traders, high-net-worth entities, and particular person traders categorized as professionals as a result of “advanced nature of digital belongings and their important worth volatility.”
Securities corporations are actually required to ascertain suitability assessments for digital asset ETF merchandise, which have to be authorized by their board of administrators. Previous to preliminary purchases, corporations additionally “should assess whether or not the shopper has the required experience and expertise in digital asset and associated product investments to find out the suitability of the funding,” the press launch reads.
The FSC stated it additionally plans to repeatedly monitor the implementation of those measures, aiming to safeguard investor pursuits whereas enhancing the “competitiveness of securities corporations.”
Taiwan joins a rising variety of markets recognizing the demand for crypto-linked funding merchandise, though regulatory warning stays excessive amid issues over volatility and investor safety.
Earlier this yr, FSC Chairman Huang Tianzhu highlighted rising issues concerning fraudulent crypto actions, signaling that strict administrative penalties could be enforced on crypto exchanges and international forex retailers. He reiterated that cryptocurrencies haven’t any correlation to the true economic system and warned of rising funding disputes and dangers related to unregulated abroad investments.