The Financial Supervisory Commission (FSC) of Taiwan has stated that it is closely monitoring the development of international cryptocurrency futures and ETFs. The commission plans to gradually relax the development of cryptocurrency-related products in the local market, with future strategies depending on market conditions and considering the volatility of the cryptocurrency market and the need to protect investors.
Bitcoin breaks $42,000, FSC plans gradual relaxation
Bitcoin broke $42,000 this morning, once again reaching a new high for the year. One possible reason for this is the market’s optimism regarding the Securities and Exchange Commission (SEC) approving the application for a Bitcoin ETF in January next year.
FSC to gradually relax regulations based on market conditions
In light of this global trend, how will the FSC of Taiwan respond to the development of cryptocurrency-related financial products in the local market? According to a report by the Commercial Times on the 5th, the FSC has stated that it will closely monitor international market trends and thoroughly study the development of cryptocurrency futures and ETFs in overseas markets.
The FSC recognizes that there is a gradual increase in cryptocurrency-related financial products in the international market. For example:
– The Chicago Mercantile Exchange (CME) offers five cryptocurrency futures and four futures options.
– The Intercontinental Exchange offers two futures and one futures option.
– The Toronto Stock Exchange has listed 16 spot ETFs and three futures ETFs.
– The New York Stock Exchange, Nasdaq, and the Chicago Board Options Exchange (Cboe) collectively list eight futures ETFs.
– The Hong Kong Stock Exchange has three futures ETFs on the market.
However, considering the large price fluctuations of cryptocurrencies and the ongoing development of international regulatory frameworks, the FSC stated that it will primarily rely on self-regulatory measures by industry participants and gradually relax regulations.
Taiwan’s ability to launch cryptocurrency-related financial products soon?
In fact, several investment trust companies in Taiwan have shown interest in issuing cryptocurrency and blockchain ETFs in the past. Some market participants had planned to invest in overseas cryptocurrency ETFs through private placements, but later decided to abandon this strategy due to various factors.
Firstly, they were concerned that the regulatory approval process may become longer and more complicated as regulatory authorities strengthen their oversight. Secondly, cryptocurrency ETFs face operational issues, such as tracking errors that result in situations where they “fall but not rise,” as well as insufficient liquidity.
Considering these challenges, the FSC stated that in the future, it may prefer to prioritize the development of “cryptocurrency concept ETFs,” such as those investing in cryptocurrency-related hardware and software companies, rather than directly linking to cryptocurrency prices.
Currently, there is only one listed Securities Token Offering (STO) in Taiwan. The Chairman of Cathay Securities, the issuer of the STO, stated that ensuring investor protection and achieving regulatory and market stability in the high volatility and speculative nature of the cryptocurrency market is a major challenge for the FSC.
Related reports:
– Bitcoin ETF: Approval possible as early as next week, with a 90% chance of passing in January next year, says Bloomberg analyst.
– Bitcoin market cap surpasses Berkshire Hathaway and Tesla, reclaiming the global top ten spot! Analyst warns of no significant pullback in over 100 days.
– Texas boy “charges into the oilfield” with a Bitcoin mining machine, overturning the abandoned natural gas industry in the area.
Tags:
STO
Cryptocurrency ETF
Cryptocurrency futures
Taiwan FSC