Taiwan to Review Crypto ETFs Depending on Global Trends

The Financial Supervisory Commission has stated that the regulatory agency is currently conducting research on the matter of crypto-based exchange-traded funds. On this account, FSC officials have stated that the officials are collecting information from various parts of the world regarding ETF regulations and policy making process.

On this account, the federal agency noted that it was in the exploratory phase. A local Taiwanese media outlet published the statement from FSC officials. According to the article published in Commercial Times, FSC is monitoring the development of spot Bitcoin ETF in the United States and SEC to make a ruling on Bitcoin spot ETF publication.

At the same time, regulators from FSC are also monitoring regulatory development in Canada and Australia and local crypto exchanges that have listed a crypto-based ETF. FSC has collected details from various futures-based crypto ETFs listed on Toronto Stock Exchange, NYSE, Chicago, Hong Kong Stock Exchange, NASDAQ, and more.

FSC has updated its initial stance of maintaining Laissez Faire approach towards crypto industry and shifted to more disciplined and robust regulatory approach.

Taiwan’s Regulators Consider Concerns Regarding Crypto ETFs

The regulators from Taiwan namely FSC implement a ban on crypto ETF applications from local financial firms citing issues such as high volatility. On the other hand, crypto regulatory process has accelerated in Taiwan recently. On this account, regulators issue Virtual Asset Management Bill in October.

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This 30-page document lists all the regulatory requirements and expectations from the industry. The bill also talks about standard regulatory requirements for the Virtual Asset Services providers such as distribution of customer and commercial funds.

Additionally, the regulators also noted that stablecoin issuers do not need to maintain a 1:1 ratio for their backing funds. Furthermore, regulators have not imposed a prohibition on algorithmic stablecoins. FSC published regulatory guidelines for virtual asset service providers in September.

These regulations imposed a ban on non-licensed entities from operating major cryptocurrency trading platforms. On the other hand, eToro CEO Yoni Assia recently noted that Bitcoin ETFs aligns with institutional investment ventures. He opined that ETFs can increase Bitcoin adoption among non-professional investors.

Bitcoin ETF as a Major Driver for Demand and Adoption

The executive was attending the Abu Dhabi Finance Week when he claimed that Bitcoin ETFs can be a major driving force in the greater adoption of flagship currency. He noted that ETFs are great investment options for investors who do not want to deal with self-custody of cryptocurrencies.

He further noted that Bitcoin ETFs will also strengthen the legitimacy of the flagship digital currency among institutional investors. He explained that such an event can increment Bitcoin price as well as a familiar, reliable, and organized investment.

Bitcoin price recently surged on account of anticipation of Bitcoin spot ETF approval. The executive further noted that ETFs will also bring ease of investing in Bitcoin through user-friendly trading platforms. He also opined that ETFs will also increment retail investments.

He noted that when it comes to individual investors, trading products with best user-experience, hassle-free, and portfolio allocation gain greater favor. A Report published by Chainalysis in September noted that lower-income nations such as Nigeria, India, and Ukraine showed the most increase in cryptocurrency adoption since last year. Assia also stated that Bitcoin adoption is driven from factors such as censorship-resistance and independent medium of exchange.

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