Unable to Issue Bitcoin ETF in Taiwan at Present, Says Deputy Director of FSC Securities and Futures Bureau: Can Taiwan Keep Up with the Bitcoin ETF Craze in the United States?
Huang Houming, Deputy Director of the Securities and Futures Bureau of the Financial Supervisory Commission (FSC), stated during a meeting on the 11th that domestic mutual funds in Taiwan are not allowed to issue Bitcoin ETFs under the restricted fund management regulations. Selling overseas related funds without approval is also illegal.
Bitcoin Spot ETF Opens with a Strong Start
On January 11th, Bitcoin welcomed its first day of trading for the spot ETF. Within just 20 minutes of opening, it saw an astonishing trading volume of 500 million US dollars, ultimately surpassing 4.6 billion US dollars.
(Trading volume of 500 million US dollars within 20 minutes of Bitcoin Spot ETF opening)
While Taiwanese users can trade Bitcoin ETFs through US brokers, domestic mutual funds in Taiwan are still not allowed to issue Bitcoin ETFs. Huang Houming, Deputy Director of the Securities and Futures Bureau of the FSC, provided an explanation on the 11th.
FSC: Domestic Issuance and Sale of Overseas Funds is also Illegal
According to ETtoday’s report, Huang Houming stated in the meeting on the 11th that under the restricted fund management regulations, domestic mutual funds in Taiwan are not allowed to issue Bitcoin ETFs, and selling related overseas funds without approval is also illegal.
Huang Houming explained:
Only securities and futures businesses in our country can issue ETF funds. Due to the restricted fund management regulations and laws, the underlying assets that can be invested in and track the index constituents must be securities. Since Bitcoin and other virtual currencies are not securities, mutual funds are not yet allowed to issue ETFs with Bitcoin as the underlying asset.
As for whether domestic mutual funds can issue “Bitcoin ETFs tracking the US market,” Huang Houming pointed out that it is currently not possible if it is operated in the form of a single link. As for operating in the form of “Fund of fund,” there are currently no relevant regulations, and further research is needed in this regard. Currently, the FSC has not received any mutual fund applications to issue such funds.
He also stated that the FSC is currently collecting data and needs further understanding.
Previously, the FSC responded in the same way, stating that the regulatory authorities will continue to study the development of global cryptocurrency futures products and ETFs and gradually relax regulations based on market conditions.
(Bitcoin ETF in Taiwan: When will it be launched? FSC: Self-regulation is the main focus, gradual relaxation based on market conditions)
Bitcoin ETF
FSC
Further reading
Opinion: Bitcoin ETFs will bring market manipulation and fraud risks to more investors
Google Policy Update: Allows advertising for US cryptocurrency trusts, gambling and DeFi platform ads still prohibited
