Taiwan allows access to foreign crypto ETFs for professional investors

Taiwan allows access to foreign crypto ETFs for professional investors
фото показано с : cryptoslate.com

2024-9-30 16:45

Taiwan’s Financial Supervisory Commission (FSC) has approved the access of professional investors to foreign crypto-based exchange-traded funds (ETFs).

The new policy, announced on Sept. 30, introduces a re-entrustment model for these investments.

Under this model, Taiwanese investors can now access foreign digital asset ETFs through qualified local financial institutions. These institutions will act as intermediaries, ensuring compliance with domestic and international regulations.

Investment criteria

However, the FSC has limited access to professional investors due to the deemed high risks involved with crypto. The regulator added:

“Professional investors include professional institutional investors, high-net-worth investment legal persons, high-asset clients, legal persons or funds that are professional investors, and natural persons that are professional investors.”

Further, securities firms must implement a board-approved suitability assessment system for virtual asset ETFs. This system will evaluate a client’s knowledge and experience before granting investment access.

The FSC has also mandated ongoing education for business personnel on digital assets. Most clients must sign a risk disclosure statement before their first investment. The regulator added:

With this move, Taiwan joins a growing list of countries recognizing crypto-based financial products despite global regulatory concerns. The FSC plans to monitor the industry closely to protect investors and foster competition among Taiwan’s securities firms.

Bitcoin ETFs

Since their launch in January, spot Bitcoin ETFs have attracted significant attention and drawn substantial amounts from institutional investors. These ETFs offer a straightforward way to include Bitcoin in portfolios, eliminating direct purchases and secure storage complexities.

Available data shows that over 1,000 institutional investors have exposure to the emerging industry via these funds. Andre Dragosch, Bitwise’s Head of European Research, points out that the US spot Bitcoin ETFs accumulated over a month’s worth of newly mined Bitcoin in one week alone.

He stated:

“US spot Bitcoin ETFs bought a combined amount of 16,774 BTC last week, while BTC miners mine approximately 13,500 BTC per month.”

The post Taiwan allows access to foreign crypto ETFs for professional investors appeared first on CryptoSlate.

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