Connect with us



Taiwan’s principal financial regulator, the Financial Supervisory Commission (FSC), is considering allowing crypto exchange-traded funds (ETFs) in the country, but only after analyzing the product’s development in other markets worldwide. At the moment, the FSC considers itself to be “in the exploratory phase.” 

According to a Dec. 5 report in the Taiwanese newspaper, the Commercial Times, the FSC is closely watching developments in the United States, where the Securities and Exchange Commission will review spot Bitcoin (BTC) ETFs in January. It also monitors developments in Canada and Australia, where local exchanges trade crypto ETFs.

The FSC also reportedly acknowledged the launch of numerous cryptocurrency futures commodities listed on the Toronto Stock Exchange, the New York Stock Exchange, the Nasdaq Exchange, the Chicago Board Options Exchange and the Hong Kong Stock Exchange, among others.

The FSC intends to gradually liberalize the rules for digital asset trading, but it should rely on “self-discipline and regulation.” According to the report, Taiwanese regulators have repeatedly blocked crypto ETF initiatives by local investment banks in recent years due to the high volatility of cryptocurrencies.

Cointelegraph reached out to the Financial Supervisory Commission for further information.

Related: Bitcoin ETFs, user experience will drive adoption — eToro CEO

Crypto regulatory developments have recently accelerated in Taiwan. In October, local legislators introduced the Virtual Asset Management Bill, a 30-page document outlining regulatory demands for the industry.

It suggests some common-sense obligations for virtual asset service providers, such as separating customer funds from the company’s reserve funds, and, at the same time, doesn’t require stablecoin issuers to hold a 1:1 ratio of reserve funds and doesn’t prohibit algorithmic stablecoins.

In September, the FSC released industry guidelines for virtual asset service providers, outlawing foreign non-licensed entities, with major local crypto exchanges forming a self-regulatory association.

Magazine: Real AI use cases in crypto. Crypto-based AI markets, and AI financial analysis