Taiwan’s Financial Regulator Nears Decision on Retail Access to Overseas Crypto ETFs

Taiwan’s Financial Supervisory Commission (FSC) is actively reviewing the possibility of allowing general retail investors to participate in overseas virtual asset Exchange Traded Funds (ETFs) through sub-brokerage accounts. This comes over a year after initial access was granted exclusively to professional investors, sparking considerable market anticipation.

Yesterday (23rd), Huang Chung-hao, Deputy Director-General of the Securities and Futures Bureau, announced that the Securities Dealers Association has been tasked with compiling a comprehensive report. This report will detail the operational performance over the past year and analyze international developments concerning virtual asset ETFs. The FSC anticipates receiving this crucial report “in the near future,” upon which it will conduct a thorough evaluation to determine whether to broaden access to include general investors.

Robust Participation: 14 Brokers Handle Billions in Crypto ETF Trades

The FSC initially authorized securities firms to facilitate the trading of foreign virtual asset ETFs in October 2024. However, due to necessary system adjustments by brokerage firms, actual operations progressively commenced in early 2025. Currently, a total of 14 brokerage firms offer professional investors the opportunity to invest in virtual asset ETFs via sub-brokerage services. These include prominent names such as UBS Securities, Uni-President Securities, CTBC Securities, Pockett Securities, Mega Securities, Taishin Securities (including the merged Yuanta Securities), Concord Securities, E.SUN Securities, Cathay Securities, Capital Securities, KGI Securities, Fubon Securities, and SinoPac Securities.

According to statistics from the Securities and Futures Bureau, as of the end of March this year, the total inventory value of foreign virtual asset ETFs held by professional investors through sub-brokerage accounts reached approximately NT$1.204 billion (roughly US$37 million). This figure, however, represents a modest 0.06% of the entire sub-brokerage market. The cumulative trading volume for these assets has amounted to approximately NT$9.899 billion (roughly US$305 million).

Understanding the Current Landscape: Why Retail Investors Are Still on Hold

Access to these overseas virtual asset ETFs is presently restricted to “professional investors.” This category encompasses professional institutional investors, high-net-worth corporate entities, high-asset clients, legal entities or funds designated as professional investors, and natural persons who meet specific financial and experience criteria.

The FSC’s initial decision to limit access to professional investors stemmed from a cautious approach, recognizing the inherent complexities of virtual assets, their often-extreme price volatility, and the elevated investment risks associated with such ETFs. This phased approach aimed to ensure market stability and investor protection.

Brokers Advocate for Broader Access as FSC Conducts Prudent Review

Recent media reports indicate a growing sentiment among some brokerage firms to further extend access to general retail investors for virtual asset ETF trading via sub-brokerage accounts. In response to these suggestions, Deputy Director-General Huang Chung-hao confirmed that the Securities Dealers Association has been tasked with a comprehensive review.

This review will involve compiling detailed statistics on business execution during the initial period, assessing any disputes or operational challenges that may have arisen, evaluating investors’ understanding and awareness of these complex products, and examining the regulatory frameworks governing similar products in international markets.

Huang emphasized that once the Securities Dealers Association submits its complete report, the FSC will undertake an exhaustive evaluation based on its findings. This assessment will be pivotal in determining whether to grant access to general investors. Furthermore, Huang noted that if a majority of other nations proceed with further easing restrictions on such investments, Taiwan would not rule out the possibility of following suit, signaling an openness to align with global regulatory trends.