Taiwan’s Financial Supervisory Commission (FSC) has officially allowed professional investors to engage with “foreign virtual asset” exchange-traded funds (ETFs). In a statement released on September 30, the FSC highlighted that this move is designed to expand “product choices” and open “investment channels for professional investors,” aimed at enhancing the competitiveness of Taiwan’s financial market.
While Taiwan has typically maintained a cautious approach to digital assets, citing risks such as fraud and market volatility, this shift reflects a balancing act between broadening investment opportunities and ensuring regulatory oversight. The FSC underscored its focus on risk management and compliance, emphasizing that only professional investors would be permitted to participate in these high-risk investments.
Despite this step towards digital assets, Taiwan remains cautious about launching a central bank digital currency (CBDC). The Central Bank of the Republic of China (Taiwan) has developed protocols for retail payments and is exploring a wholesale CBDC proof-of-concept but prefers a gradual approach, prioritizing alignment with national digital policy goals rather than rushing into the CBDC race.
This regulatory shift aligns Taiwan with other financial hubs like Hong Kong and Singapore, which are also cautiously integrating digital assets into their markets.
Source: cointelegraph.com
