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Taiwan is considering permitting a digital currency exchange-traded fund (ETF), but it’s waiting to see how similar products in other markets play out, the country’s financial market watchdog has revealed.

The Financial Supervisory Commission (FSC) says it’s in the “exploratory phase” of the ETF process at a time when such products have received the spotlight in major economies. In the U.S., the Securities and Exchange Commission (SEC) recently postponed its decision on the market’s first BTC spot ETF to January 25, and while it has a history of rejecting applications, investors are hopeful that the agency will give the green light.

Taiwanese investors may have to wait longer than their American counterparts. The FSC is still observing the SEC and regulators in other countries before it makes its decision.

FSC confirmed that there has been high interest in an ETF by local market players stretching back to two years ago, including from financial institutions. However, it rejected the applications due to high volatility and the speculative nature of digital assets.

Unable to launch their ETFs, some players attempted to connect to foreign ETFs through private placement. However, this failed as well.

As a way of easing the market into the volatile world of digital assets, the FSC is also considering first approving ETFs on ancillary products such as ‘crypto’ software and hardware providers, which are not directly linked to digital assets.

Taiwan’s digital asset ecosystem continues to grow, and with it, a need to regulate the sector and protect investors. Legislators have been working on industry guidelines this year, which will require all virtual asset service providers (VASPs) to obtain a license before they offer their services in Taiwan.

Taiwan’s march toward digital asset guidelines is fanned by cases of ‘crypto’ fraud and money laundering that have targeted Taiwanese investors. A month ago, authorities busted a $320 million Tether laundering scheme that they said was the largest of its kind.

Watch: TroyMoney is not ‘crypto’ and doesn’t trade on exchanges

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