Huang Houming, Deputy Director of the Securities and Futures Bureau of the Financial Supervisory Commission (FSC), stated during a meeting on the 11th that according to the regulations on restricted fund management, domestic investment trusts in Taiwan are not allowed to issue Bitcoin ETFs. It is also illegal to sell overseas related funds without approval.
First day of trading for Bitcoin Spot ETF opens with gains
FSC: Domestic issuance prohibited, selling overseas funds also illegal
Bitcoin welcomed the first day of trading for its spot ETF on the evening of January 11. Within just 20 minutes of opening, it saw an astonishing trading volume of 500 million US dollars, with the final trading volume exceeding 4.6 billion US dollars.
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Bitcoin Spot ETF sees 500 million USD trading volume within 20 minutes of opening
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Although Taiwanese users can trade Bitcoin ETFs through US brokers, domestic investment trusts in Taiwan are still not allowed to issue Bitcoin ETFs, as explained by Huang Houming, Deputy Director of the Securities and Futures Bureau of the FSC on the 11th.
FSC: Domestic issuance prohibited, selling overseas funds also illegal
According to ETtoday’s report, Huang Houming stated during the meeting on the 11th that, according to the regulations on restricted fund management, domestic investment trusts in Taiwan are not allowed to issue Bitcoin ETFs. It is also illegal to sell overseas related funds without approval.
Huang Houming explained:
Only securities investment trust enterprises in our country are able to issue ETF funds. According to the restricted fund management regulations and laws, the underlying assets that can be invested in and tracked by ETFs can only be securities. Since Bitcoin and other virtual currencies are not securities, ETFs based on Bitcoin cannot be issued by investment trusts according to the law.
As for whether domestic investment trusts can issue funds that track the “Bitcoin ETF in the United States,” Huang Houming pointed out that it is currently not possible to operate 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. The FSC has not received any applications from investment trusts to issue such funds.
He also stated that the FSC is currently collecting data and needs to further understand the situation.
The FSC has previously responded to this issue, stating that the regulatory authorities will continue to study the development of futures products and ETFs related to global cryptocurrencies, and gradually relax the regulations based on market conditions.
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When will the Taiwanese version of the cryptocurrency ETF be launched? FSC: Self-regulation is the main focus, regulations will gradually be relaxed based on market conditions
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Further reading
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