Taiwan's Financial Supervisory Commission Explores Introduction of Crypto ETFs Amid Global Trends
Summary:
Taiwan's Financial Supervisory Commission (FSC) is contemplating allowing crypto exchange-traded funds (ETFs) in the country, after evaluating their spread in global markets. The FSC aims to gradually liberalize rules for digital asset trading based on self-discipline and regulation. The regulator has also been monitoring updates in the US, Canada, and Australia regarding crypto ETFs. Recent regulatory developments in Taiwan include the October introduction of the Virtual Asset Management Bill, outlining industry regulations and the September release of guidelines for virtual asset service providers.
The Financial Supervisory Commission (FSC), Taiwan's primary financial watchdog, is deliberating over the potential introduction of crypto exchange-traded funds (ETFs) within the country. This consideration comes after observing the product's progression in various global markets. Currently, the FSC is navigating an exploratory phase regarding this matter.
The state's leading economic regulator has reportedly been monitoring advancements in the U.S, which anticipates the Securities and Exchange Commission's evaluation of spot Bitcoin (BTC) ETFs in the coming month, as reported by the Commercial Times on the 5th of December. The FSC is also keeping a tab on situations in Canada and Australia, both of which have local exchanges trading crypto ETFs.
In addition to this, the FSC has taken note of the listing of an array of cryptocurrency futures commodities by various top-tier stock exchanges, namely, the Toronto Stock Exchange, the New York Stock Exchange, Nasdaq Exchange, the Chicago Board Options Exchange, and the Hong Kong Stock Exchange, among a few others.
The commission aims to progressively liberalize the rules pertaining to digital asset transactions, banking on self-discipline and regulation. In the past years, due to the high fluctuation associated with cryptocurrencies, the Taiwanese regulators have frequently impeded crypto ETF proposals from local investment banks, as revealed by the reports.
In terms of crypto regulatory advancement, Taiwan has seen significant acceleration recently. In October, the local lawmakers presented the Virtual Asset Management Bill, a regulation-laden 30-page document intended for the industry. The proposed bill calls for some standard obligations for virtual asset service providers, like keeping the customer's funds separate from the company's reserve funds. It, however, does not enforce stablecoin issuers to maintain a 1:1 ratio of reserve funds nor does it restrict algorithmic stablecoins.
Earlier in September, the FSC unveiled industry guidelines concerning virtual asset service providers. This move reportedly prohibited non-licensed foreign entities, therefore leading to the creation of a self-regulatory association by the leading local crypto exchanges. The magazine indicated that real AI applications in crypto, AI markets based on crypto, and AI for financial analysis are on the rise.
Published At
12/5/2023 1:03:00 PM
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