Top cryptocurrency News: Taiwan now implicitly banned the buying of cryptocurrencies via credit cards

A notice from Taiwan's Financial Supervisory Commission (FSC), the country's top financial regulator, advised the banking sector not to offer virtual assets providers (VASPs) the status of merchants in transactions with credit card holders. 

Thus, using a credit card to purchase cryptocurrency on the island is effectively prohibited.

As the local media reported on Thursday, July 21, the Financial Supervisory Commission wrote to the Association of Banks in early July to remind its members that virtual assets are extremely speculative and risky, and that it is difficult to effectively monitor transactions due to the complexity of the cash flow.

Additionally, the regulator has said that credit cards are primarily used for consumer payments and not for investments, wealth management, or other payment methods involving highly speculative, high-risk, or highly leveraged financial activities. It referred to the long-standing custom of prohibiting credit card holders from paying for items like stocks, futures, and options as well as online gambling.

The FSC mandates that banks comply with the new rules within three months. Following that, the audit unit is required to evaluate its internal compliance and inform the regulator of the findings.

It's not the first time the FSC has taken action or expressed skepticism about cryptocurrencies. The agency released a number of press releases last year to inform the public of the risks connected to virtual assets.