The central bank has warned people against cryptoasset fraud involving bitcoin automated teller machines (BTMs), saying the scheme has become a major type of investment scam in Taiwan.
The central bank issued the warning after its quarterly policy meeting on March 17.
Some victims were defrauded while transferring money via a BTM to other accounts to buy cryptoassets, the central bank said, cautioning people about risks in the sector.
Photo: Tyrone Siu, Reuters
Since bitcoin was invented in 2009 as a virtual currency that uses peer-to-peer technology to facilitate instant payments, various cryptoasset types have mushroomed around the world to more than 18,000, the central bank said.
Channels to acquire cryptoassets have also become more diverse amid a surge in cryptocurrency prices in the past few years and the rapid development of more secure assets, such as stablecoins, which are linked to fiat money, it said.
Decentralized finance, which allows peer-to-peer lending, and non-fungible tokens, a type of digital asset, have also surged in popularity, the bank said.
Buying cryptoassets is no longer limited to computer experts, as ordinary people can purchase cryptocurrencies in a convenient way, the bank said, referring to BTMs, which were introduced in 2013.
BTMs, which feature an interface similar to automated teller machines, allow people to buy cryptoassets in exchange for cash. As cryptocurrencies, such as bitcoin, have become more mainstream over the past few years, the number of BTMs has grown quickly.
There are 27 BTMs in Taiwan, the Coin ATM Radar Web site shows.
However, while investors in Taiwan can easily purchase cryptocurrencies, they are also exposed to higher risks, as the government has yet to task an agency with the supervision of cryptoassets, the central bank said.
Criminals have been found to exploit BTMs for illicit activities, including money laundering, due to the insufficient supervision of such devices, the central bank said, citing warnings from other countries.
Matters like combating money laundering and terrorism financing are under the purview of the Financial Supervisory Commission, it added.
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