Taiwan Considering Cryptocurrency ETFs
Date: 2023-12-06 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Taiwan's Financial Supervisory Commission (FSC) is actively considering granting permission for the launch of cryptocurrency exchange-traded funds (ETFs). The regulatory body is currently assessing the benefits and potential risks associated with these financial products. Importantly, the FSC has emphasized its commitment to thoroughly studying the trends in cryptocurrency ETFs in other countries, particularly in the United States.
In the United States, futures-based Bitcoin ETFs have gained approval, and investors are anticipating that the Securities and Exchange Commission (SEC) will approve applications for spot-based Bitcoin ETFs in January. Meanwhile, in Canada, these investment products are already available, as noted by FSC representatives.
Futures-based cryptocurrency ETFs are traded on various platforms, including the New York Stock Exchange (NYSE), the Toronto Stock Exchange, Nasdaq, the Hong Kong Stock Exchange, Cboe, and others. However, the Taiwanese regulator is advocating for a cautious approach to cryptocurrency ETFs and insists on the development of robust standards before their launch.
In 2021, the Taiwanese government tightened cryptocurrency industry regulations, anticipating the need for clear guidelines to protect local crypto investors from risks following the launch of the first Bitcoin futures ETFs in the United States. The Taiwanese regulator was concerned about the volatility of cryptocurrency ETFs and the potential for market speculation. Therefore, in recent years, they opposed initiatives by local investment banks to launch cryptocurrency exchange-traded funds. Currently, the FSC is reevaluating its position, and authorities may support the launch of these products, offering investors more opportunities in the market without the need for direct cryptocurrency ownership.
In early November, the Securities and Futures Commission of Hong Kong (SFC) also began preparations for approving spot-based Bitcoin ETFs. Work is already underway to establish regulatory frameworks and mitigate risks associated with these products.
