Buying Crypto With a Credit Card Is Now Indirectly Banned in Taiwan
In his note to the banking sector, a chief financial regulator compares virtual assets to online gambling.
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Taiwan's Financial Supervisory Commission (FSC), a chief financial regulator, has issued a memo to the banking industry stating that they should not grant virtual asset providers (VASPs) the merchant status in transactions with credit card holders. This means a de facto ban on buying crypto with a credit card on the island.
As local media reported on Thursday, July 21, the Financial Supervisory Commission sent a letter to the Banking Association in early July, reminding Banking Association members that virtual assets are highly speculative and risky, and that cash flow is complex and difficult to monitor transactions effectively.
The regulator also clarified that credit cards are essentially payment tools for consumers, not investment and wealth management or payment tools with highly speculative, high-risk and high-risk transactions. financial leverage. He was referring to the long-standing tradition of preventing credit card holders from paying for online gambling, stocks, futures and options, among other things.
The FSC requires banks to adapt to the new guidelines within 3 months. After that, the audit unit should review its internal compliance and report the results to the regulator.
This isn't the first time FSC has taken action or expressed skepticism about crypto. Last year, the regulator issued several press releases to remind the public of the risks associated with virtual assets.
Related: Shanghai included blockchain, NFTs and Web3 in its five-year plan
In July 2021, Taiwan enacted the renewed Anti-Money Laundering (AML) requirements for cryptocurrency exchanges, based on the recommendation of the Financial Action Task Force....
In his note to the banking sector, a chief financial regulator compares virtual assets to online gambling.
New
Taiwan's Financial Supervisory Commission (FSC), a chief financial regulator, has issued a memo to the banking industry stating that they should not grant virtual asset providers (VASPs) the merchant status in transactions with credit card holders. This means a de facto ban on buying crypto with a credit card on the island.
As local media reported on Thursday, July 21, the Financial Supervisory Commission sent a letter to the Banking Association in early July, reminding Banking Association members that virtual assets are highly speculative and risky, and that cash flow is complex and difficult to monitor transactions effectively.
The regulator also clarified that credit cards are essentially payment tools for consumers, not investment and wealth management or payment tools with highly speculative, high-risk and high-risk transactions. financial leverage. He was referring to the long-standing tradition of preventing credit card holders from paying for online gambling, stocks, futures and options, among other things.
The FSC requires banks to adapt to the new guidelines within 3 months. After that, the audit unit should review its internal compliance and report the results to the regulator.
This isn't the first time FSC has taken action or expressed skepticism about crypto. Last year, the regulator issued several press releases to remind the public of the risks associated with virtual assets.
Related: Shanghai included blockchain, NFTs and Web3 in its five-year plan
In July 2021, Taiwan enacted the renewed Anti-Money Laundering (AML) requirements for cryptocurrency exchanges, based on the recommendation of the Financial Action Task Force....
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