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Could Taiwan ban users buying crypto with credit cards?

By Carine Lee

06:12, 8 August 2022

Taipei skyline
Taiwan’s Financial Supervisory Commission bans credit card crypto purchases as it believes cryptos are risky and speculative assets – Photo: Shuttertock

Taiwan’s Financial Supervisory Commission (FSC) asked credit card companies to stop facilitating payments for crypto-related merchants with the intent to ban the use of credit cards for crypto purchases.

The FSC sent a letter to Taiwan’s Association of Banks recently, conveying the above as the regulator believes cryptocurrencies are risky and speculative assets, according to a local report.

Taiwan’s own crypto exchange Max MaiCoin trades over $4m USDT in 24 hours, followed by ETH, BTC and Sandbox’s SAND. 

USDT to US dollar

The FSC noted instead of facilitating financial investments and speculative trading, credit cards should serve as a payment method for goods and services.

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Latest Taiwan crypto crackdown

Credit card providers who are currently serving crypto merchants have three months to comply with the FSC requirement, according to the report.

After the deadline companies must submit an audit report to the regulator to show compliance.

This is not the first time Taiwan is tough on crypto-related activities, as it warned the general public, just last month, about the risk of non-fungible tokens (NFTs) as an investment.

ETH to US dollar

According to Taiwan's central bank, only 28.5% of investors profit from selling an NFT, and one-third of NFTs produced do not sell at all.

Taiwan’s CBDC experiment

Taiwan’s NFT sector is dominated by ETH, according to the central bank report which said that nearly 80% of NFTs are minted on Ethereum blockchain.

The regulator also emphasized that credit cards are barred as payment tools for online gambling, stocks, futures, options and other transactions it considers high risk.


3,340.61 Price
-4.090% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00


0.63 Price
+3.900% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168


65,786.80 Price
-0.120% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00


178.52 Price
+2.280% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

SAND to US dollar

In June, Taiwan’s central bank announced that it is looking at both a retail and wholesale central bank digital currency.

At the start of July it set out a series of next steps for the country’s CBDC experiment while unclear when the scheme could roll out to the public.

BOJ ends CBDC project

Taiwan's central bank has been working on a pilot for a CBDC for the past two years, according to a report, to allow people to use a digital wallet and make payments without using a debit or credit card.

Taiwan’s move is unusual among East Asia’s economies. While China is moving ahead with its e-yuan retail CBDC the Bank of Japan recently announced it was discontinuing its own project due to a lack of public interest.

Likewise Australia’s central bank sees a ‘weak case’ for a retail CBDC.

Southeast Asia embraces CBDCs

Enthusiasm for the concept is stronger among Southeast and South Asian states.

Thailand is piloting a digital baht and Indonesia is looking to use a retail CBDC to drive benefits into the retail economy.

Vietnam is also looking at the concept while neighboring country Cambodia has had its digital bakong in action since 2020.

Even the tiny Himalayan Kingdom of Bhutan is piloting a retail CBDC with Ripple, the US backers of XRP which is currently locked in a legal tussle with the US Securities and Exchange Commission.

Markets in this article

Bitcoin / USD
65786.80 USD
-76.75 -0.120%
Ethereum / USD
3340.61 USD
-142.61 -4.090%
0.33026 USD
-0.00107 -0.330%
Ripple / USD
0.62635 USD
0.02335 +3.900%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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