Credit Cards Should Not Be Used for Crypto Transactions, Taiwan’s Financial Watchdog Says

The fiscal regulator of Taiwan has asked section banks not to let the usage of cards for payments successful transactions involving cryptocurrencies, section media revealed. The authorization says these assets are risky portion associated currency flows are hard to monitor.

Taiwanese Regulator Urges Banks Not to Allow Crypto-Related Payments With Bank Cards

Taiwan’s Financial Supervisory Commission (FSC) has told recognition paper issuers and banks to efficaciously forestall their customers from utilizing recognition cards arsenic a outgo instrumentality successful transactions linked to cryptocurrencies, according to a report published by the concern quality portal UDN.

The watchdog is citing the latest crypto marketplace downturn arsenic good arsenic persisting concerns implicit wealth laundering risks associated with the virtual assets, which it besides describes arsenic highly speculative and highly volatile.

Financial manufacture sources assertion the FSC issued the telephone successful a missive to the Bankers Association of Taiwan earlier successful July. This week, the authorization neither denied the quality nor commented initially. Later, it confirmed to Forkast that it had asked recognition paper agencies not to motion connected crypto work providers arsenic merchants.

The committee insisted that recognition cards should service arsenic a outgo instrumentality for depletion alternatively than a method for fiscal concern and speculative trading and gave paper acquirers 3 months to comply with the caller rules. The FSC besides reminded radical astir a anterior request that bans the usage of recognition cards successful payments for transactions linked to stocks, futures, and options.

Taiwan’s crypto assemblage remains mostly unregulated, contempt the adoption of updated anti-money laundering (AML) rules for work providers successful the marketplace past summer. The state is yet to besides finalize a task to contented a cardinal slope integer currency (CBDC).

In June, the Taiwanese cardinal slope completed a bid of method simulations successful a closed-loop situation arsenic portion of ongoing trials for the prototype of the retail integer currency. The politician of the monetary authorization admitted, however, that the slope whitethorn request different 2 years to decorativeness the enactment connected the CBDC, doubly longer than anticipated.

Do you expect Taiwan to enforce different restrictions connected crypto-related transactions successful the future? Let america cognize successful the comments conception below.