Taiwan’s monetary regulator has approved 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 companies, as accredited by the Monetary Supervisory Fee to diversify funding choices whereas managing related dangers.
In line with 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 because of the “complicated nature of digital property and their vital worth volatility.”
Securities companies are actually required to ascertain suitability assessments for digital asset ETF merchandise, which have to be accredited by their board of administrators. Previous to preliminary purchases, companies additionally “should assess whether or not the consumer 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 mentioned it additionally plans to constantly monitor the implementation of those measures, aiming to safeguard investor pursuits whereas enhancing the “competitiveness of securities companies.”
Taiwan joins a rising variety of markets recognizing the demand for crypto-linked funding merchandise, though regulatory warning stays excessive amid considerations over volatility and investor safety.
Earlier this 12 months, FSC Chairman Huang Tianzhu highlighted growing considerations 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.