Taiwan Aims to Ban Credit Cards for Cryptocurrency Purchases

A local media company in Taiwan has reported that the its Financial Supervisory Commission (FSC) is looking to ban credit cards for crypto purchases.

Additionally, the FSC noted to credit card firms that if their current practices do not meet its stated requirements, they must make adjustments within three months. After that, the audit unit must review its internal compliance and report the results to the meeting.

The FSC of Taiwan has sent a letter to the Taiwan’s local banking association reminding them that virtual assets “are highly speculative and risky, and the cash flow is complex and challenging to monitor transactions effectively.”

The report said credit card processors must pay attention and should not use virtual assets. However, according to the report, credit card operators argue that cards are merely consumer payment tools, not investment and wealth management tools with high speculative financial leverage transactions.

Taiwan FSC, over the years, ruled that credit cards are illegal payment tools for online gambling, stocks, futures, options, and other similar transactions. The latest update from the FSC appears stricter, giving operators three months to complete any adjustment where necessary.

As per the current business undertaking, credit card acquirers must pay attention to the cryptocurrency platforms and not facilitate any transaction in their favor.

In other news, CoinQuora reported on July 14 that the Shanghai Municipal People’s Government of China had included blockchain, NFT, and the metaverse in a five-year plan to develop its digital economy.