Taiwan’s principal financial regulator, the Financial Supervisory Commission (FSC), is considering allowing the crypto exchange-traded funds (ETFs) in the country, but only after analyzing the ETFs’ development on other markets around the globe. At the moment, the FSC considers itself to be “in the exploratory phase.”
According to the report in the Taiwanese newspaper, the Commercial Times, published on Dec. 5, the FSC is watching closely the developments in the United States, where the Securities and Exchange Commission will review the Bitcoin spot ETFs in January and bears in mind the example of Canada and Australia, where the local exchange already trade the crypto ETFs.
The FSC also reportedly acknowledged the launch of numerous cryptocurrency futures commodities that have been listed on Toronto Stock Exchange, New York Stock Exchange, NASDAQ Exchange, Cboe and Hong Kong Stock Exchange, among others.
The FSC intends to gradually liberalize the rules for digital asset trading, but for now, it should rely on “self-discipline and regulation.” According to the report, Taiwanese regulators have repeatedly blocked the crypto ETFs initiatives by the local investment banks in the past years due to the high volatility of cryptocurrencies.
Cointelegraph reached out to the Financial Supervisory Commission for further information.
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Last fall marked an acceleration of regulatory developments for crypto in Taiwan. In October, local legislators introduced the Virtual Asset Management Bill, a 30-page document, moderate in its demands for the industry.
It suggests some common-sense obligations for virtual asset service providers, such as separating customer funds from the company’s reserve funds, and, at the same time, doesn’t require stablecoin issuers to hold a 1:1 ratio of reserve funds and doesn’t prohibit algorithmic stablecoins.
Earlier, in September, the FSC released industry guidelines for VASPs, outlawing foreign non-licensed entities, and major local crypto exchanges have formed a self-regulatory association.
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