The Financial Supervisory Commission (FSC) of Taiwan has given the green light for professional investors to access foreign exchange-traded funds (ETFs) based on cryptocurrencies.
The new policy, announced on September 30, involves a re-entrustment model for these investments. Under this model, qualified local financial institutions will act as intermediaries for Taiwanese investors, ensuring compliance with both domestic and international regulations.
However, the FSC has imposed limitations on access for professional investors, citing the high risks associated with crypto.
The regulator specified that professional investors include institutions, high net-worth individuals, and legal entities.
In addition, securities firms are required to establish a board-approved suitability assessment system for virtual asset ETFs, taking into account a client’s knowledge and experience before granting investment access.
To further regulate the industry, the FSC has mandated ongoing education for securities business personnel on digital assets.
