Chairman of Taiwan's Financial Supervisory Commission, Huang Tien-Mu, reveals: Exploring tokenization of financial assets, fundamentally different from the cryptocurrency market.

The Financial Supervisory Commission (FSC) of Taiwan has started researching the feasibility of tokenizing financial assets, with the aim of applying this technology to the fund market and opening up a new chapter in financial product development.

Chairman of FSC, Huang Tien-Mu, Hints at Exploring Tokenization of Financial Assets

Chairman of the Financial Supervisory Commission (FSC), Huang Tien-Mu, recently revealed during a finance committee meeting that they are actively collecting international data on fund tokenization, focusing on the potential integration of blockchain technology with financial assets, and looking to incorporate this innovative application into the upcoming virtual asset law.

The FSC Chairman announced plans to propose a virtual currency law in September, raising hopes for a "Bitcoin ETF" for Taiwanese investors.

Legislator Emphasizes the Potential of Asset Tokenization, Chairman Acknowledges the Difference from the Crypto Market

Legislator Wu Ping-jui emphasized that tokenized trading can invigorate the market, providing young people with limited funds a new investment channel to avoid risking huge amounts on investments in Bitcoin and other cryptocurrencies.

Huang Tien-Mu stated that unlike cryptocurrencies, the foundation of financial asset tokenization lies in real economic value, which is fundamentally different.

Fed report details RWA: Real Asset Tokenization has many advantages, but still poses financial stability risks

FSC Learning from RWA Developments in Various Countries

Currently, the FSC's research is focused on fund tokenization and has gathered relevant data from the United States, Hong Kong, Singapore, and other places. Securities and Futures Bureau Deputy Director Gao Jing-ping shared the advantages brought by fund tokenization, such as convenience, efficiency improvement, and rapid circulation, while also emphasizing the importance of understanding the entire process from issuance, sale to redemption.

Gao Jing-ping mentioned that investment trust companies need corresponding technology to launch tokenized funds. Regarding the tokenization of existing funds, she believes that it is more feasible for new funds to be issued, while the technical feasibility of tokenizing large existing funds such as the 0050 fund requires further evaluation.

Future Outlook: Potential of Tokenizing Financial Assets

As the FSC continues to explore the possibilities of tokenizing financial assets, the industry is hopeful for the potential to increase efficiency and reduce costs. Fund tokenization may not only change the way transactions and custody are conducted but also open up new opportunities for investors and the industry.

This research and discussion by the FSC mark an important step for Taiwan's financial market in accepting and applying new technologies. As the exploration of tokenizing financial assets deepens, we have reason to expect the birth of a more convenient, efficient, and inclusive financial ecosystem.

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