Taiwan’s financial regulator, the Financial Supervisory Commission (FSC), is considering allowing convenience stores in the country to make cash transactions involving cryptocurrencies.
FSC Chairman, Wellington Koo on Thursday recommended that cash transactions related to virtual currency will be permitted “under daily limitations”. Local crypto firms have recommended that the maximum daily limit will be set to NT $100,000 (3,260 USD) to NT $20,000 (652 USD).
Daily Limits On Cash Transactions
According to Koo, cash transactions with cryptocurrency are rarely “more than NT $ 10,000” or more than $ 350.
Nevertheless, before offering the facility of crypto-to-Fiat transactions to local traders, the committee is looking for ways to effectively control them in order to restrict their use in illegal activities.
Since many regulative officials have warned, Koo cited cares about the use of pseudonymous cryptocurrencies in money laundering. To help prevent illegal activities by using digital currencies, FSC instructed financial institutions in Taiwan (officially the Republic of China) in July to open financial institutions to open bank accounts for crypto traders.
This requirement will make it mandatory for local crypto investors to publish their real name and other information associated with AML / KYC checks. Koo stated that most of the crypto-related professions in Taiwan were helpful and ready to comply with regulative arrangements and requirements to prevent illegal activities.
According to the Taipei Times, FSC has recently requested a union of the Republic of China Bankers’ Association, 62 commercial banks, and financial holding companies, To prepare self-regulatory methods for crypto properties and “risk-control measures”.
Cryptocurrencies Will “Not Retain Value”
Taiwan’s Banking Bureau’s Deputy Director-General, Sherry Chuang said that the updated cryptocurrency laws will be drafted and will be made in place next month. Chuang also approved that local digital asset business desks work together with banks.
She wrote that if a crypto transaction is more than NT $ 100,000 daily limit, then the company facilitating the exchange will have to return the additional amount.
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, Taiwan’s central bank governor, Yang Chin-Long said that there is no “trust element” in cryptocurrencies which is in Fiat currencies and they can fall.