Taiwan’s Financial Supervisory Commission (FSC) has allowed professional investors to participate in foreign virtual asset exchange-traded funds (ETFs) through sub-brokers. By allowing more diverse investment channels, the FSC aims to promote local brokerage while carefully managing the high risks of virtual assets. Strict measures, including investor suitability checks and mandatory risk disclosure, ensure that only those with sufficient knowledge can participate in these complex investments.

Taiwan Approves Virtual Asset ETF for Professional Investors

Taiwan’s Financial Supervisory Commission (FSC) announced on Monday that professional investors are now allowed to invest in foreign digital asset exchange-traded funds (ETFs) through sub-brokers. The move is aimed at providing investors with more diverse investment options and strengthening the sub-brokerage operations of local brokerage firms. The FSC also recognizes the higher risks associated with investing in virtual asset ETFs, given the volatility of such assets.

The FSC has outlined a number of key measures to accompany the new policy. Only professional investors, including high-net-worth individuals, institutional investors and institutions or funds classified as professional, will be allowed to trade foreign virtual asset ETFs. Securities firms must establish a suitable system for virtual asset ETFs and seek board approval for the system. Before accepting an order, they must ensure that customers have sufficient expertise and experience in virtual asset investment. The SFC stated:

Securities companies must evaluate the knowledge and experience of their clients before executing transactions.

In addition, non-institutional customers must sign a risk disclosure statement before placing their first order. Firms must also provide comprehensive product information to non-institutional investors before their first transaction. Regular training on virtual asset products will be required for securities company employees. The FSC will continue to supervise the implementation of sub-brokerage services to protect investors' rights and further strengthen relevant regulations.

What do you think of Taiwan’s move to allow professional investors to tap into virtual asset ETFs? Let us know in the comments below.
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