Mon, Sep 24, 2018 - Page 16 News List

FSC mulling cash transactions for cryptocurrencies

By Kao Shih-ching  /  Staff reporter

With appropriate risk-control measures, cash transactions of cryptocurrencies under daily limits could be allowed in convenience stores in Taiwan, Financial Supervisory Commission (FSC) Chairman Wellington Koo (顧立雄) said on Thursday.

Some operators of virtual-assets platforms have proposed that the daily transaction limit could be set at NT$100,000 or NT$20,000 per transaction, considering that cash transactions rarely exceed NT$10,000 at a time, Koo said at a press conference in Taipei.

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While the commission would consider allowing cash transactions for cryptocurrencies, it is still concerned whether platform operators would be able to effectively monitor the transactions, Koo said, adding that cash transactions could create a loophole for money launderers.

In July, the commission asked banks in Taiwan to have their cryptotrading partners adopt a real-name registration system, which would require both buyers and sellers to open real-name accounts at banks.

Hopefully the real-name policy will have a “stunning” effect with regards to curbing money laundering, Koo said, adding that most platform operators do not object to this policy.

The commission has also asked the Bankers Association of the Republic of China (銀行公會) to set up self-management regulations and risk-control measures as soon as possible, Banking Bureau Deputy Director-General Sherri Chuang (莊秀媛) said.

The commission hopes the regulations will be instituted as soon as next month, Chuang said.

Cryptoplatforms must work closely with their cooperating banks to minimize risks. For example, if a transaction amount reaches NT$120,000, platforms must refund the extra NT$20,000 once the daily transaction limit is set at NT$100,000, Chuang said.

The limit issue has not been finalized, she said.

There are 1981 kinds of cryptocurrencies in the world, with total market value reaching US$219.65 billion, with bitcoin accounting for 52.7 percent of the market, according to CoinMarketCap Web site.

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