365Crypto
New Path for Investors
Taiwan’s Financial Supervisory Commission (FSC) has made a big move by allowing professional investors to invest in foreign digital asset ETFs. This is designed to offer more options for investors and boost Taiwan’s financial market.
Cautious but Open to Digital Assets
Despite this development, Taiwan is still taking a cautious approach to digital assets like cryptocurrencies. The country has always been concerned about risks like fraud and wild price swings. The FSC has put strict Anti-Money Laundering (AML) measures in place, especially for cryptocurrency exchanges, to keep things in check.
Impact on the Market
By limiting digital asset ETFs to professional investors, Taiwan hopes to tap into the potential of these investments while carefully managing the risks. This approach mirrors other major financial centers like Hong Kong and Singapore, which have adopted similar policies.
ETFs and the Rules
In Taiwan, digital asset ETFs are classified as high-risk, and only firms meeting specific FSC regulations can handle them, ensuring they work only with experienced investors.
The Central Bank’s Cautious Stance on Digital Currency
While Taiwan is opening the door to digital asset ETFs, the central bank isn’t rushing to launch a central bank digital currency (CBDC). The Central Bank of the Republic of China says it’s taking its time and prefers to move slowly rather than compete with other countries. They’ve developed a CBDC for retail payments and are testing it for larger transactions, but the approach is very gradual and in line with Taiwan’s overall digital policies.
