Taiwan calls for a ban on the purchase of crypto from credit card -

Credit card companies are asked to ban crypto companies from being merchants.
The Financial regulator has given a time of three months for compliance with the new rules.

The financial officer of Taiwan has ordered the banking association to instruct credit card companies not to permit the crypto companies as merchants.

A local media report says that the company’s Financial Supervisory Commission (FSC) is willing to ban the use of credit cards for buying cryptos. Earlier in July, The commission sent a letter to the local banking association asking credit card companies to ban crypto companies from being merchants.

The letter strictly mentioned the risks of digital assets and also that they are highly unsafe. The officer has given a time of three months to obey the new conditions. After the completion of three months, the officers will review the status of compliance and will report it to the commission.

The Financial Supervisory Commission has restricted the use of credit cards for online games, stocks, and other transactions. And also described that the credit card should only be used for consumer payment purposes and not for investing, managing, and paying into highly risky financial transactions.

With increasing ups and downs in the crypto industry globally, the rules are being modified in many countries. Many well-known bodies are winding up their billions of dollars and planning to leave the industry forever. Companies like Celsius, Vauld, Three Arrows capital, Babel Finance, and many more have been hit worse by bankruptcy.

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Previous notices of FSC

The Financial Supervisory Commission has also warned and raised its voice against crypto previously. In 2021, many press releases were issued emphasizing the risk of digital assets to make the public aware of that.

The Anti-Money Laundering (AML) law was modified in July last year for crypto exchanges based on the FATF (Financial Action Task Force’s) suggestion.

Taiwan holds the second stage of the CBDC pilot program, where it can provide the digital currency to five selected Taiwanese banks for its regulation and circulation among the public.

Currently, Yi Gang, the governor of the Central Bank of China, has suggested a no-interest design for the CBDC pilot in Taiwan.

Conclusion

High instability and volatility of the crypto industry are resulting in a back-off of many prominent entities from the industry. If this continues, then in no time, the whole industry will collapse globally.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing