Taiwanese financial regulators indirectly ban the purchase of cryptography by credit card

The Financial Supervisory Board (FSC), Taiwan’s leading financial regulator, should release notes for the banking industry and allow virtual asset providers (VASPs) to act as merchants to serve. I said it wasn’t. Credit card owner. This means a de facto restriction on the purchase of cryptography by credit card within the jurisdiction of Taiwan.

Taiwan indirectly bans the use of credit cards to purchase crypto

A letter was sent from the Financial Supervisory Authority to the Bankers Association at the beginning of the month, according to a native media report on July 21, reasserting the claim that the nature of crypto assets is extremely dangerous and speculative, and Efficient monitoring of transfers is quite difficult and complex from a cash flow perspective.

Apart from this, regulators point out that credit card status is not wealth management or investment, but the status of payment methods used by customers, and their use poses significant risks. It cites a long-standing practice of preventing credit card owners from paying for stocks, online gambling, gambling, etc.

FSC will instruct banks to develop new guidelines over the next three months. After that, the audit unit should review the internal compliance as well as report the results to FSC. This is not the first time the FSC has taken action or expressed fundamentalism about cryptocurrencies. In the previous year, many pass releases were issued by regulators to raise public awareness of the risks associated with virtual assets.

Taiwan’s CBDC launch efforts

In July 2021, Taiwan implemented refurbishment and anti-money laundering (AML) requirements for cryptocurrency exchanges, following the recommendations of the Task Force on Financial Activities. Then, in June, the governor of the Central Bank of the Republic of China (Taiwan) proposed an interest-free structure to be used by the Central Bank Digital Currency (CBDC) pilots of the country.

Currently, Taiwan is undergoing the second phase of the CBDC pilot program. In each project, the central bank provides CBDC to five selected banks in Taiwan and distributes it to customers. Taiwanese financial regulators indirectly ban the purchase of cryptography by credit card

Back to top button