Thomas Daniels
Taiwan’s Financial Supervisory Commission (FSC) has officially authorized professional investors to access foreign crypto exchange-traded funds (ETFs) through local brokers, a move aimed at diversifying investment portfolios while addressing the risks associated with virtual assets.
Under the new policy, professional investors, including institutional players, high-net-worth entities, and qualified individuals, are now permitted to invest in foreign crypto ETFs. The FSC cited the “complex nature and significant volatility” of virtual assets as the rationale for limiting access to this class of investors, ensuring that only those with the necessary expertise are exposed to such high-risk products.
Local securities firms are required to perform rigorous suitability assessments for these virtual asset ETF products. These evaluations must be approved by their board of directors, and before making any initial transactions, firms must ensure that clients possess sufficient experience and knowledge in virtual asset investments to determine the suitability of the product.
The FSC emphasized that it would continue to monitor the rollout of these guidelines to safeguard investor interests while also strengthening the “competitiveness of securities firms” in Taiwan’s evolving financial market.
Taiwan’s decision follows a global trend of increasing institutional interest in crypto-linked investment products, though concerns over volatility and investor protection remain. Earlier this year, FSC Chairman Huang Tianzhu raised alarms about the rise in crypto fraud, affirming that stringent penalties would be imposed on non-compliant exchanges. He also reiterated that cryptocurrencies hold no direct connection to the real economy, underlining the regulatory body’s cautious stance amid growing risks of unregulated investments abroad.
