FSC: Bitcoin and other assets are highly volatile, lack intrinsic value, should be used on overseas platforms with caution.
The Financial Supervisory Commission (FSC) announced on the 20th that the recent drastic fluctuations in the prices of virtual assets such as Bitcoin have led to substantial losses for investors. The FSC reminds the public to be cautious of the risks associated with trading virtual assets.
FTX, Steaker are unregulated! Legislator Guo Guowen asks about the possibility of regulation, FSC Chairman Huang Tianmu responds for the first time: Will expand supervision on domestic platforms
Table of Contents
Financial Supervisory Commission: Virtual Currency Volatility
The Financial Supervisory Commission has issued multiple risk warnings regarding virtual assets such as Bitcoin, urging the public to fully understand their operational mechanisms and carefully assess the potential risks before engaging in related transactions.
Risks associated with virtual assets include:
Not being recognized as legal tender
Lacking intrinsic value
High trading risks
Price fluctuations without limits, prone to extreme volatility
- Considered highly speculative digital "commodities"
Unable to Regulate Overseas Exchanges?
The Financial Supervisory Commission stated that if individuals conduct transactions through overseas virtual asset trading platforms, these platforms are not established in compliance with Taiwanese regulations and may not be supervised by foreign regulatory authorities.
Furthermore, as these platforms offer products from overseas and the information regarding virtual asset trading is inherently opaque, it is advised that the public exercise caution.
According to previous reports, the Financial Supervisory Commission emphasized that virtual assets or related products such as options, margin trading, etc., which are derived from them, have not been approved by the Financial Supervisory Commission and are not subject to the Commission's regulatory framework.
Stop blaming the Financial Supervisory Commission for not protecting Taiwanese FTX users! Overseas institutions are beyond regulation, following similar practices as Japan and Singapore