Taiwan's Financial Commission has announced new rules allowing professional investors to invest in foreign crypto ETFs through a re-entrustment process.
New Rules for Taiwanese Investors
Under the new guidelines approved by Taiwan's Financial Supervisory Commission (FSC), professional investors can now invest in foreign virtual asset exchange-traded funds (ETFs) through the process of re-entrustment. This move is part of the FSC's efforts to diversify investment products and further develop the country's securities industry.
Stringent AML Compliance
Globally, Taiwan joins the ranks of countries like the U.S., Canada, and Hong Kong, which have launched Bitcoin ETFs or similar products. These changes are part of the broader push to place regulations on the industry, including AML compliance requirements for virtual asset service providers (VASPs) who must be registered under Taiwan's Money Laundering Control Act.
Investor Protection Measures
The FSC requires securities firms to establish and implement a suitability assessment system at the board of directors level to protect investors by reviewing their knowledge and experience before they can invest in such ETFs. Firms must also regularly conduct staff training on the latest developments and intricacies of virtual assets. Participation in such funds is limited to professional investors, including institutional investors, accredited investors, and professional clients.
These developments mark a significant advancement in Taiwan's regulation of the cryptocurrency market and provide new investment opportunities for professional investors while ensuring stringent AML compliance and investor protection.
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