Taiwan Now Allows Professional Investors To Buy Bitcoin ETFs

Taiwan's Financial Supervisory Commission (FSC) has given the greenlight for professional investors to invest in ETFs through a re-entrustment process, a move designed to diversify the country's investment options. This process allows investors to delegate their investment decisions to a third party, like a specialized fund manager or sub-broker with expertise in virtual assets.

The FSC's decision is part of a broader initiative to expand product offerings for Taiwan’s securities firms. However, given the high risks tied to these crypto-related ETFs, the regulator is restricting access to only professional investors. These include institutional investors, high-net-worth legal entities, and experienced individual investors with substantial assets.

To further safeguard against risks, securities firms are now required to establish systems that evaluate a client’s understanding and experience with virtual assets before allowing them to invest. These systems, which must be approved by each firm’s board, aim to ensure proper investor protection. Additionally, firms must provide ongoing training for their staff to ensure they fully understand the virtual asset products they handle. For non-institutional investors, signing a risk disclosure statement is mandatory before making any investment in virtual asset ETFs.

By implementing these measures, the FSC is signaling a cautious yet progressive approach to integrating virtual asset products into Taiwan's financial market, balancing innovation with investor protection.