The FSC said that after consultation with the Association of Securities Operators, the agency has developed new rules for assessing the risks associated with investments in cryptocurrency ETFs. According to the Association’s recommendations, access to these investment products should be limited to professional investors, including high-income individuals, government agencies, and legal entities or funds.
Operators of such securities are required to evaluate clients wishing to invest in cryptocurrency ETFs. These companies must obtain board approval before offering crypto ETFs, depending on the clients’ professional knowledge of digital assets. In addition, brokers are required to provide adequate product information and warn investors about the risks of investing in cryptocurrency-linked ETFs – clients must sign a written consent.
Exchanges and brokers need to conduct regular staff training to ensure employees understand how virtual assets work.
In May, the authorities of the Republic of China of Taiwan tightened penalties for crypto companies operating without a license. In March, Taiwan’s Ministry of Internal Affairs approved the creation of a cryptocurrency association, whose members planned to create self-regulatory rules based on FSC recommendations.
Source: Bits
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