Taiwan’s Financial Supervisory Commission (FSC) is exploring the potential introduction of crypto ETFs, carefully examining global trends and regulatory approaches to ensure a balanced entry into the digital asset market.
Right now, the country is in the exploratory phase, examining at how these products are performing in other countries, especially the United States, Canada, and Australia, where crypto ETFs are already available.
The FSC’s move is part of a bigger picture in Taiwan, where the country is becoming more open to digital assets. The Virtual Asset Management Bill was introduced in October and suggests guidelines for companies handling digital assets, such as keeping customer funds separate from the company’s own funds. The bill does not place stringent rules on stablecoin issuers or ban algorithmic stablecoins.
Taiwan’s regulators have been careful in the past, barring local banks from starting crypto ETFs due to the volatile nature of cryptocurrency prices. The country’s plan is to slowly change the rules for trading digital assets, focusing on a mix of self-control and regulation.
Taiwan’s careful approach mirrors how United States’ approvals and denials of Bitcoin ETFs. In September, the FSC also set rules for digital asset companies, banning foreign companies without licenses and leading to major local crypto exchanges creating a self-regulatory group.
Read the full article here