The Economic Supervisory Commission of the Republic of China and the Central Bank of the ROC have issued a joint statement warning against the use of bitcoin in Taiwan. The regulators mentioned bitcoin remains volatile, that it does not have any legal protection, and that it is not issued by a monetary authority.
The regulators noted that bitcoin trading is hugely speculative and that investors must be wary of volatility, cyber attacks, malicious defaults, theft and other risks. Apart from the now more-or-much less common list of warnings and issues, the regulators also announced that they might take “necessary steps” if financial institutions engage in bitcoin operations, reported Taipei Occasions.
The reference starts to make sense when we think about that SinoPac Monetary Holding Co. was an early supporter of bitcoin, permitting investments in bitcoins and trying to increase its reputation and use in e-commerce.
The regulators also warned that there is no assure of conversion:
“Bitcoin holders are on their own, as the currency is not issued by any monetary authority and is as a result not entitled to legal claims or guarantee of conversion.”
The warning comes as no surprise, as related warnings have currently been issued by regulators across the world. Final month Central Bank Governor Perng Fai-nan hinted at possible regulatory moves, saying that the bank is keeping a close eye on bitcoin improvement. At the time he compared bitcoin transactions to bargains in precious metals.
Another interesting trend emerged over the last couple of weeks and it could have motivated Taiwanese regulators to react. Right after the Chinese central bank clamped down on nearby exchanges, 1 Taiwanese e-tailer decided to cash in, pledging to support bitcoin transactions as of early 2014. Wayi International Digital Entertainment hoped the China ban would merely drive shoppers to its new e-commerce internet site. This may be a shot across the bow to other merchants who were hoping to make some fast income following the ban in mainland China.
View Taiwan Welcomes New Year with Bitcoin Warning on CoinDesk.
Taiwan Welcomes New Year with Bitcoin Warning
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