Taiwan cuts credit cards from being used to buy crypto

Taiwan’s financial regulator is asking banks and credit card companies not to allow credit cards as a means of payment for virtual assets services, local media reported Thursday.

See related article: Taiwan has a chance to develop crypto amid China’s clampdown, Filecoin Foundation director says

Fast facts

• Taiwan’s Financial Supervisory Commission Friday told Forkast that it had issued a letter to the banking industry association earlier this month, asking credit card agencies not to sign on virtual assets service providers as merchants.
• The financial watchdog’s move comes after Taiwan enacted anti-money laundering rules for cryptocurrency service providers in July 2021, but the crypto industry remains largely unregulated.
• The authority said credit cards should serve as a payment tool for consumption rather than a method for financial investment and speculative trading.
• The regulator gave credit card acquirers three months to make adjustments to comply with the new requirements.
• Meanwhile, Taiwan is mulling a central bank digital currency (CBDC), and last month completed trials of its prototype retail CBDC in technical simulations.

See related article: Taiwan completes trials of its prototype CBDC for retail use

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