Following the embargo on cryptocurrencies imposed on China, the consumers in Taiwan have faced some hindrances in accessing their digital currency reserves. However, the government of Taiwan has now decided to extend the ban on cryptocurrency purchases to the next level. The latest directive issued by the financial regulatory agency of Taiwan has called for barring users from credit card purchases of cryptocurrencies.
To this end, the Financial Supervisory Commission of Taiwan has sent a letter to the Banking Association of the state. The contents of the letter called for cutting off credit card purchase options for digital assets and related products. It means that online merchants will not be able to sell any cryptocurrencies in exchange for credit card payments from the citizens of Taiwan.
Taiwan Financial Regulators Warn Against Cryptocurrencies
The local media outlets in Taiwan reported that the letter penned by the Financial Supervisory Commission of Taiwan contains abrasive comments about the nature of cryptocurrencies. The letter states that digital currencies are highly speculative entities that carry a considerable amount of investment risks. The letter also claimed that users acquiring cryptocurrencies using credit cards are participating in speculative trading practices.
Furthermore, the letter also recommends that credit card payment access for cryptocurrencies make them very easily and universally available in the country. The financial regulators claim that the role of credit cards should be limited to allow the consumers to spend their money and contribute to the development of the economy rather than as a means of investment option.
In the same fashion as China, the government of Taiwan has also introduced a new CBDC project that is going to replace private cryptocurrency trading. The embargo on the credit card has allotted a 3-month duration for the related financial corporations to make adjustments accordingly and comply with the new regulatory guidelines issued by the FSC.
Governor of the Taiwanese Central Bank, Yang Chin-long, claimed that the launch date for the CBDC project is still undecided. He also told the media that the banking regulatory authority of the island country could face some challenges in the implementation phase of the CBDC project. The Bank of Taiwan already conducted feasibility research for its CBDC in 2020 as per the media briefing.
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