Government warns of risk in dealing with Bitcoin
2013/12/30 23:12:49
Taipei, Dec. 30 (CNA) Taiwan's central bank and Financial Supervisory Commission (FSC) on Monday warned the public of the high risk of Bitcoin, saying that investors will bear full responsibility for any losses themselves.
FSC officials said the Central Bank of the Republic of China (CBC) has established that bitcoins do not constitute a currency and that banks certainly should not accept it.
The officials said Bitcoin is a highly speculative "virtual product" that lacks a mechanism to protect transactions.
Because Bitcoin is highly volatile, investors who invest in or trade bitcoins will have to fully assume the trading risk themselves.
The officials also said that financial institutions should be on the watch for money laundering, noting that other countries have been found to have used Bitcoin as a tool for drug trafficking, money laundering and smuggling.
The central bank said that after China announced its restrictions on the virtual currency, its price has plunged.
The CBC has collected regulations on Bitcoin from other countries, including China, Indonesia, Thailand, Norway, Denmark, and the United States.
In China, where Bitcoin transactions are the highest in the world, the price dropped to US$690 on Dec. 25 after peaking on Nov. 29 at an equivalent of US$1,242.
According to the information collected by the CBC, the price of Bitcoin was only US$13 early this year.
(By Stacy Wu, Kao Chao-fen and Lilian Wu)
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http://focustaiwan.tw/news/aeco/201312300032.aspxhttp://www.btc798.com/article-2365-1.html Reuters Taipei, Dec. 30 - "Taiwan's central bank," said Monday that close attention bitcoin (Bitcoin) development in Taiwan, if its development threaten financial stability, then the FSC adopted in accordance with relevant laws and regulations to further regulation. Vice president "of Taiwan's central bank," said Yang Jinlong, Bitcoin is not money, but is highly speculative digital "virtual goods" and urged consumers should pay attention to if accepted, trade or hold bitcoins, should pay attention to risk. "We do not prohibit financial institutions (launched Bitcoin-related businesses), but if the problem is serious not excluded." Yang Jinlong said. The Chinese central bank in early December when the express, financial institutions and payment institutions may not conduct business associated with bitcoins. Bitcoin is not the true meaning of money, present the financial institutions are not directly involved in Bitcoin trading and investment activities. Yang Jinlong said Bitcoin regulations such as the Central Bank Act involves 2,13,35 article, management of foreign exchange regulations, the FSC organization law, banking law, finance and other consumer protection laws, will be based on relevant laws, to take necessary measures if necessary. Central Bank press release also said that Bitcoin price volatility, may have investment risk or currency exchange risk. And stored in the electronic wallet of Bitcoin, with the risk of hackers stealing vulnerable to virus attacks for no risk of disappearance, and easily become illegal trading tools, but also the lack of specific legal protection. "Taiwan's central bank" in the Legislative Yuan, president of previously accepted transponder has called bitcoin as bubbles.
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