Taiwan’s Financial Supervisory Commission (FSC) Considers Crypto ETFs
Taiwan’s Financial Supervisory Commission (FSC) is actively considering the introduction of crypto ETFs. The FSC is studying global trends and regulatory approaches to ensure a balanced entry into the digital asset market. This move comes as Taiwan becomes more open to digital assets, with the recent introduction of the Virtual Asset Management Bill.
Currently, Taiwan is in the exploratory phase, closely examining the performance of crypto ETFs in other countries like the United States, Canada, and Australia. These countries already have crypto ETFs available. The FSC aims to learn from their experiences and make informed decisions for Taiwan.
A Careful Approach to Regulation
Taiwan’s regulators have been cautious in the past, prohibiting local banks from launching crypto ETFs due to the volatile nature of cryptocurrency prices. However, the country is now taking steps towards changing its rules for trading digital assets. The focus is on a combination of self-control and regulation.
The Virtual Asset Management Bill introduced guidelines for companies handling digital assets, including requirements to keep customer funds separate from company funds. Notably, stablecoin issuers are not subject to stringent rules or algorithmic stablecoin bans under this bill.
Following in the Footsteps of the United States
Taiwan’s careful approach aligns with how Bitcoin ETFs have been approved or denied in the United States. In September, the FSC implemented rules for digital asset companies, leading to local exchanges forming a self-regulatory group and banning foreign companies without licenses.
Hot Take: Taiwan Opens Doors to Crypto ETFs with Cautious Steps
Taiwan’s Financial Supervisory Commission (FSC) is considering the introduction of crypto ETFs, signaling the country’s growing openness to digital assets. By studying global trends and regulatory approaches, the FSC aims to ensure a balanced entry into the digital asset market. This move follows the recent introduction of the Virtual Asset Management Bill, which provides guidelines for handling digital assets.
Taiwan’s regulators are taking a careful approach to regulation, learning from past experiences by initially prohibiting local banks from launching crypto ETFs due to cryptocurrency price volatility. However, they are now focused on gradually changing the rules for trading digital assets through a combination of self-control and regulation.
The FSC’s decision-making process mirrors that of the United States in approving or denying Bitcoin ETFs. This cautious approach emphasizes Taiwan’s commitment to making informed decisions for its digital asset market.
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