Taiwan will ban purchasing crypto with credit cards and the country cautioned the credit card providers to stop processing crypto purchases because of crypto’s speculative nature so let’s read more today in our cryptocurrency news today.
Taiwan will ban purchasing crypto with credit cards and the Taiwanese Financial Supervisory Commission thinks that cryptocurrencies are risky and speculative assets which is how they come to their decision. According to local reports, the FSC sent a letter to the Taiwain’s Association of Banks that asked credit card companies to stop facilitating payments for the crypto merchants. The regulator wants card providers to stop processing payments for futures, options, stocks, and online gambling.
The FSC noted that credit cards should serve as a payment method for goods and services rather than facilitating financial investments and other kinds of speculative trading. The report added that the credit card providers that service the crypto merchants have three months to comply with the requirements and after the deadline, the companies have to submit the audit report to the regulator and show compliance. In the meantime, this is not the first time Taiwan took a stance against crypto-related activities as the country cautioned back in 2021 against investing in BTC and other assets, citing the speculative nature of the assets.
Three months later, Taiwain enacted AML laws for digital asset service providers in the country and these rules require local exchanges to report transactions above $17,900 conducted inc ash so the customers have to complete a mandatory KYC requirement before using the exchange. Taiwan’s central bank warned against investing in NFT because the market is full of fake transactions. Despite the stringent stance against crypto assets, Taiwan is on the verge of launching a central bank digital currency as the bank said it was working on CBDC for the past two years with retail trials completed for the prototype.
The bank didn’t reveal the launch date for CBDC and noted that digital currency will allow citizens to use digital wallets to make payments without the need for a credit or debit card.
As recently reported, The Central Bank of The Republic of China or the Taiwan central bank warned the NFT sector is full of fake transactions and advised investors to be careful when investing in such assets. According to reports from Taiwan News, the nation’s central bank doesn’t find dabbling with NFT as an appropriate strategy and citing a survey, the institution reminded that less than 30% of the investors make a profit when selling digital collectibles.