Somehow preventing the democratization of cryptocurrencies is sometimes (often) the goal of regulators. To achieve this, there are many options on the table. The Taiwan Financial Supervisory Commission (FSC) chooses to ban the use of credit cards to buy bitcoin and others.
Taiwan puts the hola on cryptocurrency purchases via CB
Nothing is done, but the ban would be on track. According to a local business newspaper, the FSC sent a letter to the Taiwan Banking Association in early July urging it to cease all trading with crypto platforms. In other words, it is make it impossible to use credit cards to acquire bitcoins or other similar assets. The reason given: cryptocurrencies are “highly speculative and risky” and it is particularly difficult to “effectively monitor their transactions”.
The FSC grants a three-month period to banking agents to comply with its requirements. After this deadline, they will have to submit an audit report to demonstrate their compliance.
From his point of view, credit cards should serve solely as a means of payment for goods and services rather than facilitating financial investment and speculative trading. And, in defense of him, it’s not just cryptocurrencies that are in his sights, but any transactions he deems “high-risk”, namely stocks, futures, options and gambling money online.
Fall of the cryptocurrency market: a boon for regulators
While this isn’t the first time the Taiwanese regulator has tried to increase its control over cryptocurrency flows, including forcing exchanges to report transactions over $ 17,900 based on a zealous interpretation of antitrust laws. money laundering (AML), after enforcing information-your-customer (KYC) – the island’s territory has increased its level of surveillance since China banned cryptocurrencies from its territory.
Indeed, due to the intransigence of its large and formidable neighbor, it has experienced an unprecedented boom in crypto transactions. And correlatively, from the fall of the market, the harmful consequences that accompany it, or the losses for investors who are not always well informed. Done, advocating consumer protection, to use the current term in the world of regulators, the time has come to tighten the screws of industry control.
Unless the intention is not so much to save individuals from the clutches of the big bad Bitcoin, but rather by erecting this type of barrier to entry such as a ban on purchasing by credit card, to reserve the cryptocurrency market for large traditional financial players.
So, in tune with financial policemen around the world who are also preparing for the advent of state-owned digital currencies, Taiwan, which is also working on a prototype of a CBDC (or French-style MNBC), is no exception.