The financial regulator in Taiwan has issued a new note to the banking industry stating that they are not allowed to grant virtual asset suppliers trader status.
Too speculative and risky
According to the financial regulator, virtual assets are currently still highly speculative and risky. Also, the cash flow is complex and it would be challenging for the country to monitor the transactions.
In addition, the regulator has also specified that credit cards are essentially consumer payment instruments, not necessarily investment and wealth management or payment instruments with high speculative, high risk and high financial leverage. It referred to the time-honored tradition of protecting credit card holders from paying for online gambling, stocks, futures and options, among other things.
3 months to adapt
Banks will have 3 months to adapt to the new guidelines. Thereafter, the audit unit must evaluate its internal compliance and report the results to the supervisor.
It is not unknown that Taiwan’s overseer is skeptical of cryptos. They have already stated several times through various press releases that there are risks associated with virtual assets. Now they seem to be taking more action. The bill issued has prohibited the purchase of virtual assets via credit cards, among other things. It is unknown what will be the next step within the country’s crypto world.
