Taiwan Bans Crypto Purchases Using Credit Cards

Taiwan’s securities watchdog has asked the banking industry not to grant virtual asset providers merchant status


key takeaways

  • Taiwan’s FSC said credit cards should not be used for payments tied to gambling, stocks, futures, options and other transactions
  • Credit card issuers in Taiwan have three months to make adjustments and comply with the new law

Taiwan’s securities watchdog has implicitly banned cryptocurrency transactions with credit cards on the island nation.

The country’s Financial Supervisory Commission (FSC) issued a letter to the banking industry association earlier this month, asking that they not grant “merchant status” to virtual asset providers which service credit card holders.

Details of the letter stated that digital assets are highly speculative and prices are often extremely volatile, local media reported. Further, credit cards should not be used for payments tied to gambling, stocks, futures, options and other transactions.

The move follows strict anti-money laundering laws for cryptocurrency services providers enacted last July.

Credit card issuers in Taiwan have been given three months to make adjustments and comply with the new law. Once that time is up, an independent audit unit will review compliance and report results to the FSC, which is effectively Taiwan’s equivalent of the Securities and Exchange Commission.

Cryptocurrency is tightly regulated in neighboring China, but lawmakers worldwide have looked to hasten crypto supervision following the implosion of Terra’s algorithmic stablecoin in May, which sent cryptocurrency markets tumbling.

The UK recently introduced a new bill that seeks to regulate stablecoins and Russia has extended its crypto payments ban to specifically include security tokens, utility tokens and non-fungible tokens (NFTs).

Meanwhile, the Taiwanese central bank has been exploring a no-interest CBDC (central bank digital currency). The CBDC is in its second stage of development and is currently being distributed in five selected Taiwanese banks.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png


With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.


Trump insiders say he will dismantle the anti-crypto army within an hour of taking office, but the campaign has been quiet about how it plans to do so


Plus, Solana set a record for weekly unique active addresses on the network last week


Launching cryptocurrencies the old fashioned way may soon make a return


Kraken and CertiK brought their beef to social media after Kraken said researchers exploited $3 million through a bug


NVIDIA’s historic run is only deepening the divide between mega-cap tech stocks and the rest of the market.