Taiwan Opens Foreign Crypto ETFs to Professional Investors

Taiwan’s Financial Supervisory Commission (FSC) has taken a significant step in the realm of digital asset investments by allowing professional investors to engage with foreign crypto Exchange-Traded Funds (ETFs). This decision marks a shift towards embracing digital assets while maintaining a cautious approach to risk management and regulatory compliance.

Who Can Invest?

The new regulations specifically target professional investors, such as institutional investors and high-net-worth individuals. These investors can now invest in foreign crypto ETFs through Taiwanese securities firms. However, regular investors are excluded from this opportunity, reflecting the FSC’s cautious stance on protecting less experienced investors from potential risks associated with virtual assets.

Regulatory Measures

To ensure a secure investment environment, Taiwan has tightened its crypto regulations. This includes mandatory anti-money laundering compliance and the imposition of a 5% Value Added Tax (VAT) on transactions. These measures aim to enhance transparency and reduce the risk of illicit activities in the crypto market.

Aligning with Global Trends

By opening the digital asset ETF market to professional investors, Taiwan aligns itself with global financial centers like Hong Kong and Singapore. This move is seen as a way to expand investment options and enhance market competitiveness while maintaining a focus on risk management. Despite this progressive step, Taiwan’s central bank remains cautious about launching a Central Bank Digital Currency (CBDC), indicating a balanced approach to digital financial innovations.