The Taiwan Financial Supervision Commission (FSC), the main financial regulator, issued a note to the banking industry stating that they should not grant seller status to virtual asset providers (VASPs) in transactions with credit card holders. This means a virtual ban on the purchase of cryptocurrency with a credit card on the island.

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Like local media informed On Thursday, July 21, the Financial Supervision Commission sent a letter to the Association of Banks in early July, reminding members of the Association of Banks that virtual assets are highly speculative and risky, and cash flows are complex and difficult to track transactions. effectively.

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The regulator also pointed out that credit cards are, in essence, consumer payment instruments and not investments and asset management or payment instruments with high speculative transactions, high risk and high financial leverage. It mentions a long tradition of shielding credit card holders from paying for online gambling, stocks, futures and options, among other things.

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FSC requires banks to adjust to the new rules within 3 months. After that, the audit unit must check its internal compliance and report the results to the regulator.

This is not the first time the FSC has taken action or voiced its skepticism about cryptocurrencies. The regulator issued several press releases last year to remind the public of the associated risks associated with virtual assets.

Shanghai includes blockchain, NFT and Web3 in its 5-year plan

In July 2021 Taiwan adopted an updated anti-money laundering law. (AML) for cryptocurrency exchanges based on the recommendation of the Financial Action Task Force on Money Laundering.

At the end of June, the governor of the Central Bank of the Republic of China (Taiwan) recommended an interest-free design for the country’s central bank digital currency (CBDC) pilot project. Taiwan is currently in the second phase of its CBDC pilot program, in which its central bank provides CBDC to five selected Taiwanese banks for distribution to consumers.