Taiwan Expected to Open Up to MultiTrustee Bitcoin ETF Decision to be Made by the End of the Year with the Two Preconditions Prioritized by the Financial Supervisory Commission

Is Taiwan considering opening up the option for investors to purchase Bitcoin ETFs through multiple brokers? Bitcoin ETFs have become a popular investment option since their approval in the United States. The Bitcoin spot ETF was listed for less than a week and already surpassed the silver ETF in terms of asset management, becoming the second-largest single commodity ETF in terms of asset management. However, due to the high volatility and risk associated with virtual currency products, Taiwan’s regulatory authorities have not allowed users in Taiwan to purchase Bitcoin spot ETFs through multiple brokers to protect investors. After the new cabinet took office on May 20th, the new chairman of the Financial Supervisory Commission, Peng Chun-Lung, revealed during a legislative session on June 22nd that the Securities Association had proposed a plan on April 22nd to open up the option for investors to purchase Bitcoin spot ETFs through multiple brokers under two conditions. According to Peng, South Korea and Japan have not opened up, while Singapore, Hong Kong, and Thailand have conditionally allowed it. Therefore, after considering international experience, the Securities Association suggested that it could be opened up under the following two conditions: First, it should be opened up to professional investors, including legal entities or natural persons with assets exceeding NT$30 million, rather than directly to the general public. Second, investors must sign a risk disclosure statement before engaging in multiple broker purchases. However, the exact time for opening up the option for multiple broker purchases of Bitcoin spot ETFs is expected to be decided by the end of this year. Legislator Ke Ju-Chun also called for the opening up of Bitcoin spot ETFs to the general public in addition to legal entities, and the Financial Supervisory Commission’s Securities and Futures Bureau Director-General Chang Chen-Shan stated that since Bitcoin is not a security, mutual funds cannot issue Bitcoin ETFs, and many companies are indeed vying to introduce foreign Bitcoin ETF products.