Can retail investors buy overseas cryptocurrency ETFs? The Financial Supervisory Commission: Will reevaluate whether to allow omnibus account trading after receiving the report

Taiwan has opened “sub-authorization” investment in overseas virtual asset spot ETFs to professional investors for over a year. When will retail investors get their turn? The Financial Supervisory Commission (FSC) has provided an answer.

One-year observation of sub-authorization business, professional investors lead the way in testing the waters

Taiwan’s financial market’s acceptance of virtual assets is entering a new milestone. The FSC issued relevant notices as early as September 2024, officially approving domestic securities firms to facilitate “sub-authorization” channels for entrusted buying and selling of virtual asset spot ETFs listed on overseas exchanges. The initial implementation of this policy was set with strict eligibility, limited to professional investors as defined by regulations.

Image source: FSC The FSC issued relevant notices as early as September 2024, officially approving domestic securities firms to facilitate “sub-authorization” channels

This decision was based on the high volatility nature of virtual assets and their complex product structures. Regulatory authorities aim to first open access to high-net-worth groups, observe market operation mechanisms within a controlled financial environment, and assess the feasibility of full opening in the future. As securities firms gradually completed backend system upgrades and stress tests, this business officially launched in early 2025 and has been operating for over a year now.

Under the current system, eligible professional investors include institutional professional investors, high-net-worth investment legal entities, high-asset clients, legal entities or funds classified as professional investors, and natural persons meeting financial and professional background criteria. The FSC initially excluded retail investors from the first wave of opening, mainly due to the significantly higher investment risks associated with virtual assets compared to traditional securities. For investors lacking relevant hedging knowledge or with lower risk tolerance, direct entry into this market could face substantial asset losses.

Therefore, the government has adopted a gradual opening approach. Currently, the virtual asset market is at a critical intersection of regulation and innovation. This “point-to-surface” strategy helps the FSC more precisely capture potential trading risks and, while ensuring financial stability, gradually expand asset allocation diversity.

Further reading
Taiwanese can now buy Bitcoin ETFs! Fubon: Professional investors can sub-authorize, what are the conditions?
Sub-authorization for Bitcoin spot ETFs is banned! How else can you buy in Taiwan? Two major reminders to understand at once

Market Data Analysis: Stable growth in scale but still a low overall proportion

According to the latest statistics provided by the FSC Securities and Futures Bureau, as of the end of March 2026, 14 domestic securities firms have officially launched sub-authorization services for virtual asset ETFs. The specific participants include UBS Securities, Union Securities, China Trust Securities, Pocket Securities, Mega Securities, Taishin Securities (including the merged Yuanta Securities), KGI Securities, Cathay Securities, Quanyi Jindin Securities, KCB Securities, Fubon Securities, and E.SUN Securities.

In terms of operational performance, from early 2025 to the end of March 2026, the total trading volume of foreign virtual asset ETFs bought and sold by professional investors via sub-authorization has reached NT$8B, demonstrating strong interest among high-net-worth groups in crypto asset allocation.

Despite the impressive accumulated trading volume, the market shows a more cautious atmosphere when observing “inventory balance.” As of the end of March this year, investors’ holdings amounted to about NT$8B, accounting for only 0.06% of the total sub-authorization business volume. This data indicates that professional investors are currently mainly engaging in short-term arbitrage or tactical asset adjustments rather than long-term strategic holdings.

Deputy Director of the Securities and Futures Bureau, Huang Zhonghao, pointed out that although trading volume fluctuates with market enthusiasm, the current business scale remains marginal compared to the overall sub-authorization market. This gradual progress reflects the cautious nature of traditional financial systems when integrating decentralized assets and provides valuable data for future decisions on whether to open the market to retail investors.

Regulatory core issues, investor protection, and international trends

The FSC maintains a cautious but open attitude toward further easing restrictions for non-professional investors (retail investors). Regulators have asked securities associations to conduct a comprehensive survey of business operations over the past year, compiling an in-depth report. The core evaluation indicators of this report include three main parts:

• First, whether there have been significant consumer disputes or complaints during the participation of professional investors;
• Second, whether securities firms, in their frontline KYC (Know Your Customer) and product suitability assessments, have ensured investors fully understand the extreme volatility characteristics of virtual assets;
• Third, to gather information on regulatory developments of such products in major international markets.

Regarding international markets, the U.S. as a global leader has successfully launched multiple virtual asset spot ETFs, fueling a worldwide digital asset boom. Additionally, Hong Kong, a financial hub in Asia, has shown proactive momentum, not only promoting related ETF listings but also allowing retail investors to participate under specific frameworks. Conversely, most Asian and European countries still regard virtual assets as highly speculative, tending to restrict participant scope.

Huang Zhonghao stated that the FSC is closely monitoring the latest regulatory measures for virtual asset ETF trading in the U.S. and other countries. If most nations make regulatory breakthroughs and market operations remain stable, Taiwan will consider their experiences and reassess the feasibility and supporting measures for retail investors to buy and sell overseas virtual asset ETFs.

Brokerage association report as an important indicator

Market expectations for opening to retail investors continue to rise. The securities association is expected to submit a formal evaluation report soon, which will directly influence the FSC’s decision. As digital assets like Bitcoin ($BTC) gradually become part of mainstream institutional asset allocations, domestic securities associations are actively collecting market feedback, hoping to expand service scope while safeguarding investor protection.

For ordinary investors, investing in overseas ETFs via legitimate sub-authorization channels offers higher security and legal protections compared to directly opening accounts on unregulated overseas crypto exchanges.

However, even if future policies move toward opening, the FSC is expected to set strict safeguards. These may include enhanced risk disclosure requirements, investment thresholds, or restrictions on the types of ETFs available (such as only spot ETFs and excluding leveraged products).

Currently, the regulator is in the final data compilation stage. After receiving the complete report from the securities association, a final cross-departmental assessment will be conducted. Whether Taiwan can keep pace with the global trend of crypto financialization and enable ordinary citizens to easily allocate digital assets may be revealed in the near future.