Taiwan To Ban Credit Card Use For Crypto Purchases

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Last Updated on July 23, 2022 by Bitfinsider

Credit card transactions for cryptocurrencies will no longer be permitted in Taiwan since the island nation’s watchdog sees them as unsafe and speculative investments, according to local sources.

Taiwan’s Financial Supervisory Commission pleaded with the banking industry association in a letter delivered earlier this month not to grant “merchant status” to companies that enable users of credit cards for digital asset providers.

Credit card processors are reportedly advised to exercise caution and refrain from using virtual assets. According to studies, credit card firms think that cards are solely used for consumer payments and not for investments or wealth management activities involving significant levels of speculative financial leverage.

Global Crypto Regulation is Being Accelerated

According to the sources, credit card issuers who now enable cryptocurrency merchants have three months to adhere to the FSC’s rule. After the cutoff, providers must send the organization a compliance audit report.

Regulators around the world have accelerated the enactment of legislation governing digital currencies in recent months as a result of this year’s severe downturn in the global financial markets, which saw a number of well-known companies go out of business and billions of dollars leave the sector.

After China started cracking down on cryptocurrencies last year, there was a rise in activity in Taiwan, which was predicted to overtake China as the region’s new bitcoin powerhouse. However, not much has been said since then regarding the neighborhood’s cryptocurrency industry.

“Given the extremely speculative and high-risk character of virtual assets, credit cards should not be utilized for transactions involving virtual assets,” stated the FSC.

The FSC has also outlawed the use of credit cards for similar operations such online gambling, buying and selling stocks, futures, and options.

Following a request from the Financial Action Task Force, Taiwan updated its anti-money laundering (AML) regulations for cryptocurrency exchanges in July 2021.

Governments all around the world have worked to speed up crypto oversight in the wake of Terra’s algorithmic stablecoin’s May collapse, which sent shockwaves across the larger crypto markets.

New Crypto Investors And Taiwan’s CBDC

As of the previous year, more than half of Taiwanese cryptocurrency investors were under the age of 24. Of the investors, 10% or so were over the age of 35.

The dependence of the digital currency environment on internet culture, which promotes the usage of digital currencies and NFTs as financially appealing investment instruments, is the cause of the skewed age distribution.

Taiwan is in the process of developing a digital currency that will be issued by the central bank despite its harsh stance against crypto assets.

The nation’s central bank said last month that it had been working on CBDC for the previous two years and had already finished the retail trials for the pilot test.

According to Atlantic Council Research, the central bank was anticipated to finish its technical testing of the CBDC prototype by September.


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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