Taiwan Financial Agency Says Credit Cards Shouldn’t Be Used for Cryptocurrency Transactions – Bitcoin News Regulatory


Local media revealed that Taiwan’s financial regulator has asked local banks not to allow cards to be used for payments in transactions involving cryptocurrency. The authority says that these assets are risky, while the cash flows associated with them are difficult to monitor.

Taiwan regulator urges banks not to allow crypto-related payments using bank cards

Taiwan Financial Supervisory Authority (TFA)Security Cooperation Forum) to credit card issuers and banks to effectively prevent their customers from using credit cards as a payment tool in crypto-related transactions, according to Report Published by UDN business news portal.

The watchdog cites the latest slump in the cryptocurrency market as well as ongoing concerns about money laundering risks associated with virtual assets, which it also describes as highly speculative and highly volatile.

Financial industry sources claim that the Financial Services Commission issued the call in a letter to the Taiwan Bankers Association earlier in July. This week, the authority did not deny the news and did not initially comment. Later, she confirmed to Forkast that she had asked credit card agencies not to sign crypto service providers as merchants.

The commission insisted that credit cards should serve as a payment instrument for consumption rather than a vehicle for financial investment and speculative trading, and gave cardholders three months to comply with the new rules. The Financial Services Commission (FSC) has also reminded people of the prerequisite that credit cards should not be used in payments for transactions related to stocks, futures and options.

Taiwan’s crypto sector remains largely unregulated, despite the adoption of updated anti-money laundering (AML) rules for service providers in the market last summer. The country has not yet completed a project to issue a central bank digital currency (CBDC).

In June, Taiwan’s central bank completed a series of technical simulations in a closed-loop environment as part of the ongoing trials of its retail digital currency prototype. The Governor of the Monetary Authority admitted, however, that the bank may need another two years to finish work on the central bank of the central bank, twice longer than expected.

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Bank cards, banks, card issuers, cards, CBDC, commission, credit cards, crypto, crypto market, crypto transactions, cryptocurrencies, cryptocurrencies, digital currencies, Financial Supervisory Commission, FSC, regulations, regulator, restriction, restrictions, rules, Taiwan, Taiwanese, guard

Do you expect Taiwan to impose further restrictions on crypto-related transactions in the future? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tasev is an Eastern European technologist who likes to quote Hitchens: “Being a writer is what I am, not what I do.” Besides crypto, blockchain, and fintech, international politics and economics are two other sources of inspiration.

photo credits: Shutterstock, Pixabay, Wikicommons

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