Recently, the Taiwan Financial Supervisory Authority (FSC) said that cryptocurrencies are both risky and speculative assets.

As a result, the regulator intends to ban the use of credit cards for cryptocurrency purchases.

Taiwan bans cryptocurrency purchases with credit cards:

According for reports Issued domestically in Taiwan, the FSC regulator sent a letter to the Association of Taiwan Banks earlier this month, asking credit card companies to stop facilitating payments to crypto-related merchants.

The regulator wants card providers to stop processing payments for stocks, futures, options, online gambling and other high-risk transactions.

In a statement, the FSC clarified that credit cards should serve as a means of payment for goods and services rather than a facilitation of financial investment and speculation.

Read:UK shuts down cryptocurrency that defrauded investors of more than $700,000

The statement added that credit card providers currently serving crypto traders have three months to comply with FSC requirements.

After the deadline, companies must submit an audit report to the regulator to show compliance.

Taiwan’s central bank warns against investing in NFT:

Meanwhile, this is not the first time that Taiwan has taken a tough stance against crypto-related activities.

In April 2021, the country warned against investing in bitcoin and other crypto assets.

Three months later, Taiwan enacted anti-money laundering laws for the country’s digital asset service providers.

Anti-money laundering rules require local exchanges to report transactions over $17,900.

Additionally, clients must complete the mandatory KYC requirements before using any trading platform.

In June 2022, Taiwan’s central bank reportedly warned against investing in non-fungible tokens (NFTs) because the NFT market is riddled with fake transactions.

Taiwan and preparing for the launch of a CBDC:

Despite its tough stance against crypto assets, Taiwan is on the cusp of launching a central bank digital currency (CBDC).

Last month, the country’s central bank told that it had been working on a CBDC for the past two years, with trials of the prototype already being completed.

Read:The case of Ripple and the SEC is ongoing with no prospect of settlement at this time

Although the bank did not reveal the launch date of the CBDC, it indicated that the digital currency will allow citizens to use the digital wallet to make payments without the need for a credit or debit card.

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