Taiwan financial regulator warns of high risks in crypto market

11/17/2022 11:59 PM
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Image for illustrative purpose only. Source: Pixabay
Image for illustrative purpose only. Source: Pixabay

Taipei, Nov. 17 (CNA) Taiwan's Financial Supervisory Commission (FSC) warned Thursday about the extremely high risks involved in investing in cryptocurrencies after crypto exchange FTX declared bankruptcy last week, saying it will continue to watch closely related developments and how other countries respond to the situation.

The FSC issued the call after Taiwanese victims tried to establish an online self-rescue group, in an effort to seek a way out of the crypto market collapse.

Due to the lack of transparency and price volatility, the FSC has repeatedly warned Taiwanese about investing in risky financial products traded on virtual asset platforms, whether at home or abroad, the FSC's Banking Bureau and Securities and Future Bureau said in a jointly issued statement.

With the exception of Securities Token Offerings (STO), which are recognized by Taiwan's Securities and Exchange Act and are traded subject to government regulation and oversight, other types of virtual currencies and their derivative products lack appropriate supervision and regulation and are not authorized by the FSC, the statement said.

It has been reported that hundreds of thousands of Taiwanese have invested in the crypto exchange FTX.

FTX, one of the world's largest cryptocurrency exchanges, collapsed in the space of about one week, with both the company and its former CEO, Sam Bankman-Fried currently under investigation in the U.S. and other nations for possible securities violations, according to a CBS News report.

(By Flor Wang and Hsieh Fang-yu)

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