Taiwan wants to ban buying cryptocurrency with credit cards – CryptoActu

Somehow preventing the democratization of cryptocurrencies is sometimes (often) the goal of regulators. There are many options to achieve this. The Taiwan Financial Supervision Commission (FSC) has decided to ban the use of credit cards to purchase bitcoins and other goods.

Taiwan bans the purchase of cryptocurrencies through CB

Nothing is being done, but a ban would be on the right track. According to a local business daily, in early July, the FSC sent a letter to the Taiwan Banking Association urging them to stop all transactions with cryptocurrency platforms. In other words, it is about making it impossible to use credit cards to purchase bitcoins or other assets of the same nature. Reason: Crypto assets are “highly speculative and risky” and it is especially difficult to “effectively track their transactions.”

FSC gives banks three months to comply with its requirements. After this period, they will have to submit an audit report to him to prove their compliance.

From his point of view, credit cards should serve exclusively as a means of paying for goods and services, and not to facilitate financial investments and speculative exchanges. And, in her defense, not only cryptocurrencies, but also any transactions that she considers “high-risk”, namely stocks, futures, options and gambling on the Internet, are in her field of view.

The fall of the crypto market: a boon for regulators

Though this isn’t the first time the Taiwanese regulator has been trying to tighten its grip on cryptocurrencies, including forcing exchanges to report transactions worth more than $17,900 under a zealous interpretation of antitrust laws. -your-customer (KYC) – The island territory has increased surveillance levels as China banned cryptocurrencies on its territory.

Indeed, due to the intransigence of his large and formidable neighbor, he has experienced an unprecedented boom in cryptocurrency transactions. And accordingly, after the market falls, the devastating consequences that accompany it, namely the loss of capital for investors who are not always very well aware. In fact, in advocating for consumer protection, to use the current term in the world of regulators, it’s time to tighten the screws on industry controls.

Except that the intention is not so much to save people from the clutches of the big bad bitcoin, but to create a barrier to entry, such as a ban on credit card purchases, to reserve the market cryptocurrency for the big traditional financial players.

So, in unison with financial cops around the world who are also gearing up for government digital currencies, Taiwan, which is also working on a prototype CBDC (or French-style MNBC), is no exception.

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