Regulation
Taiwan Strengthens Crypto Regulations, Considers Spot Bitcoin ETFs
Taiwan Strengthens Crypto Regulations, Considers Spot Bitcoin ETFs
Taiwan’s financial regulator, the Financial Supervisory Commission (FSC), is taking a two-pronged approach to cryptocurrencies: stricter regulation and potential approval of spot Bitcoin exchange-traded funds (ETFs).
In September 2024, the FSC plans to propose new draft regulations on digital assets aimed at strengthening investor protection and more effectively supervising the sector. The move comes amid concerns about the growing connection between digital assets and the traditional financial system, as Underlines by FSC Chairman Huang Tien-mu. Huang also warned investors of potential fraud and stressed that the new regulations would result in heavy penalties for fraudulent practices.
However, Taiwan is not only focused on tightening the reins. The Chamber of Commerce publishes a study on spot Bitcoin ETFs in April, suggesting a potential future for these investment products within the country’s regulated framework. While welcoming the possibility of creating domestic spot Bitcoin ETFs, the FSC recommends against investing in foreign crypto-based products due to regulatory uncertainties.
Taiwan’s commitment to fostering a responsible crypto environment is also demonstrated by the regulations implemented in September 2023. These regulations require foreign cryptocurrency service providers to obtain approval before operating in the country and have been established in collaboration with a newly established self-regulatory association of major Taiwanese cryptocurrencies. Exchanges.