1. New Authorization for Professional Investors
2. Risk Management Measures
3. Central Bank's Regulatory Stance on CBDC

On September 30, Taiwan’s Financial Supervisory Commission (FSC) officially authorized professional investors to engage with exchange-traded funds (ETFs) that involve 'foreign virtual assets.' This move aims to broaden investment opportunities and enhance the competitiveness of Taiwan's financial market.

New Authorization for Professional Investors

In a statement issued on September 30, the FSC mentioned that the new authorization aims to expand 'product choices' and 'open investment channels for professional investors,' enhancing Taiwan’s financial market competitiveness. This authorization follows Taiwan's historically conservative stance on digital assets like cryptocurrencies due to risks like fraud and volatility.

Risk Management Measures

The commission also indicated that it will continue to monitor the virtual asset market, emphasizing the importance of risk management and regulatory compliance. The FSC has issued multiple warnings and enforced strict Anti-Money Laundering measures, particularly aimed at cryptocurrency exchanges. To support financial technology development, the Taiwanese government has created initiatives like the 2018 FinTech Regulatory Sandbox, allowing startups and institutions to experiment with new business models.

Central Bank's Regulatory Stance on CBDC

Despite this progress in digital asset ETFs, Taiwan’s central bank remains cautious about launching its own Central Bank Digital Currency (CBDC). Yang Chin-long, president of the Central Bank of the Republic of China, has previously stated that there is no urgency to introduce a CBDC, advocating for a gradual approach. Taiwan has developed a CBDC protocol for retail payments and is exploring a proof-of-concept for wholesale CBDCs, aligning with broader government digital policy objectives.

Taiwan's regulatory shift towards digital assets aligns with practices in major financial centers like Hong Kong and Singapore. By restricting access to high-risk investments to professional investors, Taiwan aims to balance opportunities and risks in the virtual asset market.