Taiwan’s FSC Introduces Re-entrustment Approach to Trading Bitcoin ETFs
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The Taiwan Financial Supervisory Commission (FSC) has granted seasoned traders the right to trade Bitcoin Exchange-Trade Funds (ETFs) through a re-entrustment approach.
The Chinese market regulator has introduced crypto rules to oversee the market due to increasing demand for cryptocurrency, especially the spot Bitcoin ETFs.
The main goals of the move can be seen from two angles. One is to diversify investment chances for professionals. The other is to increase the re-entrustment trade for securities companies working in the province.
However, it was revealed in the recent announcement made by the FSC that the regulatory authority is currently in talks with the Securities Business Association of the Republic of China to assess any possible risk associated with the crypto ETFs move.
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In the announcement, FSC has made it known that only seasoned traders can trade. This includes institutional participants, legally recognized entities with enough capital, and individuals with good investment knowledge. Retail traders will not be allowed to enter any trade regarding the asset.
The financial regulatory body further stressed what was expected of the securities firms and institutional traders. They are tasked with securing the board’s approval, evaluating clients’ knowledge of digital assets, issuing warning letters to be signed, and providing investment education opportunities.
Bitcoin ETFs Gain Momentum
The demand for Bitcoin ETFs in recent weeks has continued to increase. Last week alone, over $1 billion in inflows were recorded in the United States. However, Thailand’s Securities and Exchange Commission (SEC) has moved towards the modification of the asset. Now it’s Taiwan’s turn.
Finally, with countries like Australia and Hong Kong introducing regulations for Bitcoin ETF trades, there is a tendency to experience greater interest from more institutional and small traders.
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