FSC warns of the risks of investing in digital currencies

  • By Kao Shih-ching / Staff Reporter

The Financial Supervisory Commission (FSC) yesterday reiterated its warning that investing in cryptocurrencies carries high risks, adding that in Taiwan only fundraising through security token offerings (STOs) is regulated by the commission.

The commission’s remarks came after the collapse of Bahamas-based FTX, which filed for bankruptcy last week after consumer withdrawals and a failed bailout deal with Binance Holdings Ltd (幣安).

At a press conference held by local cryptocurrency exchange Pionex (派網) in Taipei, a Taiwanese investor said that before the collapse of FTX, he had been investing in cryptocurrencies for about a year. year, attracted by the platform’s return of 5-8%, but he has now lost all his investment.

Photo: Reuters

As FTX is registered and operates overseas, it is not regulated by the commission, but Banking Bureau deputy chief executive Roger Lin (林志吉) said the commission would monitor how foreign regulators handle foreign exchanges. fallout from the FTX bankruptcy.

The commission has not received any complaints or reports from local investors, but it would contact local cryptocurrency exchanges to see if they have partnered with FTX or launched joint products, the chairman of the board said on Monday. FSC, Thomas Huang (黃天牧).

The collapse of FTX and the exchange’s native token FTT, as well as the impact on other popular cryptocurrencies, such as bitcoin, show that cryptocurrencies are highly volatile and cannot help investors hedge against other investment targets, so investors should be extremely careful, Huang added. .

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. The final decision will be at the discretion of The Taipei Times.

Comments are closed.