Taiwan’s financial regulator, the Financial Supervisory Commission (FSC), is taking a two-pronged approach to crypto: stricter regulations and potential approval for spot Bitcoin exchange-traded funds (ETFs).
In September 2024, the FSC plans to propose a new draft of digital asset regulations aimed at bolstering investor protection and overseeing the industry more effectively.
This initiative comes amidst concerns regarding the growing connection between digital assets and the traditional financial system, as highlighted by FSC chairman Huang Tien-mu.
See Also: Hungary Proposes New Bill To Allow Banks To Provide Crypto Services
Huang also warned investors about potential fraud and emphasized that the new regulations will come with harsh penalties for fraudulent practices.
However, Taiwan isn’t solely focusing on tightening the reins.
The Chamber of Commerce is releasing 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 domestic spot Bitcoin ETFs, the FSC advises caution against investing in foreign crypto-based products due to regulatory uncertainties.
Taiwan’s commitment to fostering a responsible crypto environment is further evidenced by regulations implemented in September 2023.
These regulations require foreign cryptocurrency service providers to obtain approval before operating within the country and were established in collaboration with a newly formed self-regulatory association of major Taiwanese crypto exchanges.
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