Taiwan's Regulators Considering Allowing Convenience Stores to Facilitate Crypto to Cash Transactions

  • Cryptocurrency to cash transactions might be approved in Taiwan, according to regulators.
  • Taiwanese lawmakers are evaluating the risks associated with such services and will submit update crypto regulations next month.

Taiwan’s financial regulator, the Financial Supervisory Commission (FSC), is reportedly considering to allow convenience stores in the country to conduct cash transactions involving cryptocurrencies.

FSC chairman, Wellington Koo, recommended on Thursday that digital currency-related cash transactions be allowed “under daily limits.” Local crypto firms have advised that the maximum daily limit be “set at NT $100,000 (3,260 USD) to NT $20,000 (652 USD).”

Daily Limits On Cash Transactions

According to Koo, cash transactions with cryptocurrencies seldom “exceed NT $10,000”, or $350. However, before possibly permitting local merchants to facilitate crypto-to-fiat transactions, the commission is looking for ways to effectively monitor them in order to prevent their use in illicit activities.

As many regulatory authorities have warned, Koo cited concerns about the the use of pseudonymous cryptocurrencies in money laundering. In order to help prevent illicit activities carried out using digital currencies, the FSC instructed Taiwanese (officially the Republic of China) financial institutions in July to open bank accounts for crypto traders.

This requirement would then make it compulsory for local crypto investors to disclose their real name and other information related to AML/KYC checks. Koo said most crypto-related businesses in Taiwan have been supportive and are ready to comply with regulatory policies and requirements to prevent unlawful activities.

According to the Taipei Times, the FSC recently requested the Bankers Association of the Republic of China, a consortium of 62 commercial banks and financial holding companies, to formulate self-regulatory processes and “risk-control measures” for crypto assets.

Cryptocurrencies Will "Not Retain Value"

Sherri Chuang, the deputy director-general of Taiwan’s Banking Bureau, said that updated cryptocurrency regulations would be drafted and put in place next month. Chuang also recommended that local digital asset trading desks work closely with banks.

She noted that if a crypto transaction exceeds a daily limit of NT $100,000, then the company facilitating the exchange must refund the extra amount.

In August, CryptoGlobe reported that Taiwan’s central bank governor, Yang Chin-long, said cryptocurrencies do not have the “trust element” that fiat currencies have and they might collapse.

Ching-long explained that if a currency lacks the trust element, then it will not be able to retain value and cannot function effectively as a medium of exchange - a view shared by giant Wall Street investment bank Goldman Sachs.

Bank of Japan Governor Announces Investigation into Digital Currencies

  • Japan's central bank has announced an investigation into the development of digital currencies.
  • Bank of Japan (BoJ) governor Haruhiko Kuroda says the country has no intention of launching a digital currency as of now.

Bank of Japan (BoJ) governor Haruhiko Kuroda has announced that the country’s central bank is conducting research into digital currencies. 

According to a report published Nov. 19 by Reuters, Japan’s central bank has taken interest in the development of a digital currency and is actively researching the technology. The news comes in the wake of China’s high-profile central bank currency, which is rumored to launch before the end of the year. 

While Kuroda said the central bank has no intention to issue a digital currency in the short-term, it is researching the technology for potential implementation in the future. 

Kuroda also warned against the launch of stablecoins without proper governance and risk management protocols in place. He told parliament on Tuesday, 

If stable coins backed by companies with a huge customer base are issued globally, that could have an impact on monetary policy and financial system stability.

Kuroda is the latest central bank governor to weigh in on digital currencies and stablecoins, following the global regulatory storm created by Facebook’s libra.  

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