Taiwan's financial authority plans to prohibit credit card transactions of cryptocurrencies - CryptoShrypto
Monday, January 30, 2023
HomeLaw & PoliticsTaiwan's financial authority plans to prohibit credit card transactions of cryptocurrencies

Taiwan’s financial authority plans to prohibit credit card transactions of cryptocurrencies

Taiwan’s financial authority seems to be worried about the ongoing crypto winter and continues to monitor crypto regulations, as seen by a series of recent announcements.

According to Taiwan’s local media, the country’s regulators are planning to urge banks to prohibit the use of credit cards for crypto-related purchases and transactions. In addition, the financial regulator warns the public regarding cryptocurrency transactions, highlighting the risks of online fraud and hacking.

Taiwan’s Financial Supervisory Commission told Forkast on Friday that it had submitted a letter to the banking industry association urging that virtual asset service providers may not be accepted as merchants.

The move to prohibit credit card payments for digital currency comes after Taiwan approved anti-money laundering regulations for cryptocurrency service providers in July 2021. But as of now the crypto sector remains mostly unregulated. To maintain market stability and to prevent money laundering, the Taiwanese government will keep a close check on cryptocurrencies. 

Additionally, the regulator is also planning to conduct complete inspections to make sure that no bank or credit union in Taiwan facilitates cryptocurrency transactions. Credit card acquirers were given three months to make changes to comply with the new standards by the regulator.

Meanwhile, Taiwan is considering a central bank digital currency (CBDC) and completed testing of a prototype retail CBDC in technical simulations last month.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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