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With investors continuing to seek more investment options, the Taiwan government has taken a step forward by opening the gates of virtual assets exchange-traded products (ETFs). 

Taiwan’s Financial Supervisory Commission (FSC) announced that they have allowed “professional investors” to invest in foreign virtual asset ETFs through a re-entrustment method. 

In the re-entrustment method, FSC had to consult with the Securities Association of China (SAC) to review the relatively high investment risks of foreign virtual asset ETFs. The FSC mentioned foreign crypto ETFs should only be managed by professional investors due to the “price fluctuations” and “high risk.”

According to the press release, professional investors are described as professional institutional investors, high-net-worth investment people, individuals or firms legally recognized as professional investors who meet certain criteria.  

As per the conditions mentioned by the FSC, securities firms are required to establish a suitability assessment system for Virtual Asset ETFs, which should be approved by the board. Additionally, firms must evaluate whether the client has sufficient knowledge and experience in virtual asset investment. 

Before conducting their first purchase, clients must sign a risk disclosure statement before making their first investment. Furthermore, firms also need to provide all the relevant information about the crypto ETFs.

To be updated about the ever-changing crypto market, Taiwan’s FSC mentioned that the securities firms are required to provide regular training for their staff to help them understand the crypto world.