Taiwan FSC Permits Professional Investors to Access Bitcoin ETFs Under New Rules  

• Taiwan’s FSC has opened access to Bitcoin ETFs for professional investors under strict regulations.
• Retail investors in Taiwan are excluded from investing in cryptocurrency ETFs at this time.
• The FSC requires detailed education and risk warnings for non-institutional clients investing in Bitcoin ETFs.

Taiwan’s Financial Supervisory Commission (FSC) has announced that professional investors can now invest in cryptocurrency exchange-traded funds (ETFs), including Bitcoin ETFs, under a re-entrustment mechanism.

This development follows growing interest in regulated cryptocurrency products amid global demand for Bitcoin ETFs. 

The FSC stated that only professional investors, such as institutional investors and high-net-worth individuals, will have access to these products. Retail investors will not be allowed to participate at this stage. 

The regulator is working with the Securities Business Association of the Republic of China to assess risks associated with foreign crypto ETFs before further expanding access.

In addition to restricting access, the FSC has implemented strict requirements for securities firms wishing to offer crypto ETFs. Firms must obtain board approval and assess their clients’ experience and knowledge of virtual assets. 

Clients who are not institutional investors must sign risk disclosure documents before their first investment. These firms must also provide detailed information on the product and conduct regular educational sessions on virtual assets.

Moreover, securities firms must ensure that clients fully understand the nature of the high-risk investment before proceeding. These measures reflect the FSC’s cautious approach to balancing investor protection with growing demand for diversified financial products.

The decision follows Taiwan Mobile’s recent license to operate as a virtual assets service provider (VASP), signaling increasing regulatory clarity around digital assets in Taiwan. The FSC emphasized that it will monitor the rollout of these regulations to safeguard investors while enhancing the competitive positioning of Taiwan’s securities firms.

The FSC’s decision aligns with the global trend toward regulated cryptocurrency products, offering Taiwanese investors the opportunity to participate in the evolving digital assets landscape within a controlled environment.