As a seasoned analyst with a decade of experience navigating the tumultuous waters of global finance, I find Taiwan’s recent move to allow professional investors access to foreign crypto exchange-traded funds through local brokers an intriguing development. The decision seems to strike a delicate balance between encouraging innovation and ensuring investor protection – a balancing act that many regulators worldwide are grappling with in the rapidly evolving crypto space.
As a crypto investor, I’m thrilled to learn that Taiwan’s financial regulators have given the green light for professional investors like me to tap into foreign crypto exchange-traded funds (ETFs) via local brokers. This move opens up new opportunities for us to diversify our portfolios and potentially reap greater returns in the dynamic world of digital assets.
Investors based in Taiwan now have an opportunity to invest in overseas cryptocurrency exchange-traded funds (ETFs) via domestic securities companies, following approval from the Financial Supervisory Commission. This move aims to expand their investment choices while ensuring proper risk management.
Based on a statement released on September 30th, the Financial Stability Council’s latest policy restricts access to cryptocurrency ETFs for foreign markets only to professional investors such as institutional investors, wealthy organizations, and individuals who are classified as professionals due to the intricate nature of virtual assets and their high price volatility.
Financial institutions are now mandated to set up evaluations for Exchange-Traded Funds (ETFs) based on virtual assets, which need board approval prior to implementation. Before making initial purchases, these firms must also examine whether the client possesses the appropriate knowledge and experience in virtual asset investments to ensure the investment’s appropriateness. This requirement is outlined in the press release.
According to the FSC, they intend to regularly check up on the application of these rules, with the goal of protecting investors’ rights and boosting the “competing advantage” of securities companies.
Taiwan is now part of a growing list of regions acknowledging the increasing interest in cryptocurrency-related financial instruments. However, regulatory vigilance stays elevated due to apprehensions about market volatility and investor security.
Previously this year, the head of FSC, Huang Tianzhu, expressed growing worries about deceptive crypto transactions. He emphasized that tough administrative sanctions will be applied to crypto trading platforms and foreign currency dealers. Furthermore, he emphasized that cryptocurrencies do not have a connection with the real economy and cautioned about potential investment disagreements and risks linked to unregulated international investments.
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2024-09-30 12:18