Taiwan Tightens Crypto Regulations, Considers Spot Bitcoin ETFs

 

Taiwan's financial regulatory authority, the Financial Supervisory Commission (FSC), is adopting a dual strategy towards cryptocurrencies, combining heightened regulations with potential endorsement for spot Bitcoin exchange-traded funds (ETFs).

In September 2024, the FSC is set to introduce a revised set of digital asset regulations, aimed at enhancing investor safeguards and improving oversight of the industry. This move responds to concerns raised by FSC chairman Huang Tien-mu regarding the increasing integration of digital assets with the conventional financial system. Huang has cautioned investors about potential fraudulent activities, emphasizing that the upcoming regulations will carry severe penalties for any illicit practices.

Despite the emphasis on stricter oversight, Taiwan is not exclusively focused on tightening regulations. The Chamber of Commerce is slated to publish a report on spot Bitcoin ETFs in April, indicating a potential avenue for these investment products within the country's regulated framework. While expressing openness to domestic spot Bitcoin ETFs, the FSC advises against investing in foreign crypto-based products due to uncertainties in regulatory frameworks.

Taiwan's dedication to nurturing a responsible crypto environment is further underscored by regulations enacted in September 2023. These regulations mandate that foreign cryptocurrency service providers must secure approval before operating in the country, a collaborative effort with a newly established self-regulatory association comprising major Taiwanese crypto exchanges.