Taiwan’s Financial Supervisory Commission (FSC) is allowing professional investors, including institutional investors, high-net-worth individuals, and high-asset clients, to invest in foreign crypto ETFs through local securities firms. This “re-entrustment” method opens the door to high-stakes virtual asset investments, but only for those who meet strict criteria. Securities firms are responsible for ensuring investors have the necessary experience and knowledge, and must regularly train staff to stay informed on crypto products.
Taiwan’s crypto market has faced tighter regulation, especially after incidents like the FTX collapse. The FSC now requires virtual asset service providers (VASPs) to comply with Anti-Money Laundering (AML) regulations, operational transparency, and consumer protection standards. Non-compliance means no business, and all crypto activities are subject to a 5% VAT, with exceptions for smaller transactions under NT$40,000 monthly.