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Can Taiwan Keep Up with the Bitcoin ETF Craze in the U.S.? FSC Vice Chairman of the Securities and Futures Bureau: Currently Unable to Issue Domestically

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Can Taiwan Keep Up with the Bitcoin ETF Craze in the U.S.? FSC Vice Chairman of the Securities and Futures Bureau: Currently Unable to Issue Domestically

During a meeting on the 11th, Huang Hou-ming, Deputy Director of the Securities and Futures Bureau of the Financial Supervisory Commission, stated that under the restrictions of the fund management regulations, domestic investment trusts in Taiwan are not allowed to issue Bitcoin ETFs. Selling overseas related funds without approval is also considered illegal.

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Bitcoin Spot ETF Starts Trading with a Strong Debut

Bitcoin welcomed its spot ETF debut on the evening of January 11, with an astonishing trading volume of $500 million within the first 20 minutes of trading and eventually exceeding $4.6 billion in total trading volume.

Bitcoin Spot ETF Sees $500 Million Trading Volume in First 20 Minutes

Although Taiwanese users can trade Bitcoin ETF through U.S. brokers, domestic fund managers in Taiwan are still not allowed to issue Bitcoin ETFs, as explained by Huang Hou-ming, Deputy Director-General of the Securities and Futures Bureau of the Financial Supervisory Commission (FSC) on the 11th.

FSC: Domestic Issuance Prohibited, Sale of Overseas Funds Also Illegal

According to a report by ETtoday, Huang Hou-ming stated during a meeting on the 11th that under the restricted fund management regulations, domestic fund managers in Taiwan are not allowed to issue Bitcoin ETFs, and selling related overseas funds without approval is also illegal.

Huang Hou-ming explained:

Securities and fund management companies in our country can issue ETF funds. Due to restricted fund management regulations and laws, the underlying assets of ETFs that track index components can only be securities. Since cryptocurrencies like Bitcoin are not securities, fund management companies are still not allowed to issue ETFs with Bitcoin as the underlying asset.

As for whether domestic fund managers can issue funds tracking "U.S. Bitcoin ETFs," Huang Hou-ming pointed out that it is currently not possible to operate in a single link form, and there are no regulations on operating in the form of "Fund of Fund funds." This aspect still requires further research, and the FSC has not received any applications from fund managers to issue such funds.

He also mentioned that the FSC is currently collecting data and further understanding is needed.

Prior to this, the FSC responded similarly, stating that the regulatory authority will continue to study the development of global cryptocurrency futures products and ETFs, and gradually relax restrictions based on market conditions.

When will the Taiwanese version of the cryptocurrency ETF be launched? FSC: Self-regulation is the priority, gradual relaxation based on market conditions