The Financial security Supervisory Commission (FSC) clarified to the public that the country would no longer allow cryptocurrency transactions on credit cards. In the first half of July 2022, the FSC wrote a letter to the banking association, informing them to avoid giving merchant status to digital asset providers. The letter further stated that the notoriously volatile nature of the crypto market serves as a prime reason behind such a decision.
The regulatory authorities clarified that credit cards are meant for payments rather than for wealth management or investment or payment with high financial leverage transactions. They further mentioned that the move would also restrict people from paying for online gambling, stocks, etc.,
The decision is followed by the enactment of renewed anti-money laundering laws to prevent cryptocurrency providers from forgery.
The FSC has provided three-months time to the banks and credit card issuers to make adequate adjustments to the policy. After the given term ends, the audit unit will undertake a review. However, compliant banks are and issue a report based on it.
Well, it’s not the first time FSC has taken such an action. Last year they issued a press release to make the general public aware of the risks associated with an investment in virtual assets.
Besides Taiwan countries like the UK, Russia imposed strict regulatory practices against stable coins and digital assets. The growing strictness on cryptocurrency indicates that countries are taking extra precautions following Terra’s stablecoin crash in May.
Remember, cryptocurrency is a highly volatile asset and hence requires you to follow safe practices when investing in them. Before you make an investment decision, be diligent enough to study the market or seek expert help closely.