Taiwan’s Monetary Supervisory Fee (FSC), a chief monetary regulator, issued a observe to the banking trade, indicating that they need to not grant the digital belongings suppliers (VASPs) the standing of service provider in operations with bank card holders. Meaning a de-facto ban on shopping for crypto with a bank card on the island.

Because the native media reported on Thursday, July 21, The Monetary Supervisory Fee despatched a letter to the Affiliation of Banks in early July, reminding the members of the Affiliation of Banks that digital belongings are extremely speculative and dangerous, and the money stream is advanced and difficult to watch transactions successfully.

The regulator has additionally specified that bank cards are primarily shopper cost instruments, not funding and wealth administration or cost instruments with excessive speculative, excessive danger and excessive monetary leverage transactions. It referred to the longstanding custom of preserving bank card holders from paying for on-line playing, shares, futures and choices, amongst different issues.

The FSC requires banks to regulate to the brand new pointers inside 3 months. After that, the audit unit should overview its inside compliance and report the outcomes to the regulator.

It’s not the primary time FSC has taken motion or voiced its skepticism about crypto. Final 12 months, the regulator issued a number of press releases to remind the public of related risks related to digital belongings.

Shanghai included blockchain, NFTs and Web3 in its 5-year plan

In July 2021, Taiwan enacted the renewed anti-money laundering (AML) necessities for cryptocurrency exchanges, based mostly on the Monetary Motion Activity Drive’s suggestion.

On the finish of June governor of the Central Financial institution of the Republic of China (Taiwan), advisable a no-interest design for the nation’s central financial institution digital forex (CBDC) pilot. Taiwan is presently within the second stage of its CBDC pilot program, the place its central financial institution offers the CBDC to 5 chosen Taiwanese banks for distribution amongst shoppers.