Earn 20 Reward Points by commenting the blog postTaiwan’s Monetary Supervisory Fee has issued a cryptocurrency guideline for its banking sector. The directive requires banks to not grant service provider standing to VASPs. That is to stop bank card holders from shopping for crypto with their playing cards. That is an efficient ban all through the island. In line with native media experiences on July 21, the FSC despatched a letter to the Taiwan Financial institution Affiliation in early July. The letter reminded members that digital belongings had been dangerous and speculative in nature. Money circulation is tough and sophisticated, making it tough to trace transactions. The regulator has additionally been adamant that bank cards are cost instruments for shoppers, not funding instruments. If these had been for use in wealth administration and the acquisition of speculative devices, the long-term outcomes couldn’t be predicted. In line with the FSC letter, banks have three months to adapt and implement the required tips in three months. After the three-month interval, every financial institution’s audit division should confirm compliance and ship the outcomes to the regulator. That is not at all the primary time that the FSC has acted decisively to stop cryptocurrency buying and selling utilizing bank cards. This physique has additionally made its skepticism in direction of crypto and associated actions very clear. The FSC has additionally issued quite a few press releases to boost public consciousness of the dangers related to crypto and digital belongings. In July 2021, Taiwan carried out strict anti-money laundering legal guidelines primarily based on suggestions made by the Monetary Activity Power. At the moment, Taiwan is engaged on the 2nd stage of a CBDC program. Below this program, some Taiwanese banks will be capable to distribute CBDC to shoppers.