Restrictions and Alternatives for Buying Cryptocurrency with Credit Cards in Taiwan

Want to use a credit card to purchase Bitcoin, Ethereum, and other virtual currencies in Taiwan? What seems like a simple card payment has now become a pain point for many investors. This article provides a comprehensive guide to buying crypto with a credit card, covering policy restrictions and practical operations to help you find the most suitable investment method.

Why does Taiwan ban the use of credit cards to buy virtual currencies?

Currently, most banks in Taiwan no longer allow credit card payments to purchase cryptocurrencies. This policy stems from regulations by the Financial Supervisory Commission (FSC) in 2022. The core restriction is: Credit card acquiring institutions are not permitted to sign virtual asset service providers as authorized merchants.

The FSC’s logic is clear — credit cards are fundamentally a payment tool for consumption, not an investment or financial management tool. Although this regulation nominally targets domestic institutions, in practice it restricts foreign trading platforms from offering credit card payment options to Taiwanese users.

Why did the government make this decision?

The reasons include several aspects:

Risk Prevention — The decentralized nature of cryptocurrencies makes government intervention difficult. In recent years, incidents like exchange collapses and NFT crashes have occurred frequently, causing many investors to suffer losses and seek explanations from regulators. Reluctantly, the government has had to act from the industry side.

Anti-Money Laundering — Virtual currencies are easily misused for illicit purposes. Governments worldwide typically implement strict regulations requiring compliance with KYC and AML policies.

Lack of Regulation — Unlike stock markets, which can be regulated through government funds, cryptocurrencies are fully decentralized, leaving government tools ineffective.

It’s worth noting that these restrictions mainly stem from the government’s difficulty in regulating crypto assets. In contrast, banks in Europe and America, as well as global credit card giants like Visa and Mastercard, are actively increasing cooperation with virtual currencies. Taiwan only recognizes a few small companies as virtual asset service providers, unable to connect with mainstream international exchanges, making related regulations more symbolic than substantive.

Comparison of different deposit methods

When buying cryptocurrencies, there are various deposit options. Here is a comparison of the three most common methods:

Pros and cons of buying crypto with a credit card

Advantages

• Simple and Convenient — Complete transactions with a few clicks on your computer or mobile device, friendly to small investors
• Reward Accumulation — Earn cashback or rewards simultaneously, killing two birds with one stone
• Fast Settlement — Funds are credited immediately, suitable for investors who want to enter the market quickly

Disadvantages

• High Fees — Credit card purchase fees are usually above 1.5%, sometimes up to 3%
• Poor Exchange Rates — Currency conversion rates are often 3%-5% worse than banks, significantly impacting large investments
• Highest Total Cost — Considering fees and exchange spreads, spending 100 yuan on a credit card might only buy about 95 yuan worth of crypto

For large investors, bank transfers are often preferred:

• Fixed fees rather than percentage-based, making larger amounts more cost-effective
• Although the process is more complex and time-consuming, it has limited impact on long-term investments
• Trading platforms often offer higher interest rates to attract large capital inflows

How to operate buying crypto with a credit card

Different platforms generally follow similar logic, usually including the following steps:

Register → KYC verification → Deposit → Trading → Withdrawal

Using common platforms as an example, the steps are:

Step 1: Find the target currency

Locate the trading pair you want on the platform homepage, such as BTC/USD or ETH/USD.

Step 2: Select credit card deposit

Click on the deposit option, choose “Credit Card” as the payment method, and confirm the currency unit.

Step 3: Enter purchase amount

Input the amount you want to invest, review fees and exchange spreads, then click confirm to complete the transaction.

Step 4: Verification and confirmation

The system will send a verification code to your mobile or email. Complete the two-factor authentication, and the transaction will be effective.

Practical options for Taiwanese investors

Although the government prohibits direct credit card purchases, investors still have alternatives:

Most convenient — Use a local Taiwanese platform to buy USDT (a stablecoin) with TWD, then transfer to other platforms to buy Bitcoin or other main cryptocurrencies.

Most direct — Use C2C trading (peer-to-peer), directly exchanging virtual currencies with merchants. The fees are relatively transparent, and transactions are quick.

If insisting on using a credit card — Try different issuing banks’ credit cards. Some banks have looser restrictions on overseas transactions, but you must bear the risks yourself.

Conclusion

While it’s true that policies in Taiwan restrict credit card purchases of crypto, it is by no means the only way to invest in virtual currencies. Understanding the reasons behind these restrictions and mastering the pros and cons of various deposit methods will help you find the most suitable investment plan.

Whether through bank transfers, C2C, or other methods, the key is to choose reliable trading channels and manage risks properly. If policies change in the future, credit card purchases may reopen, but for now, investors need more patience and flexibility. The important thing is not to give up on understanding and participating in crypto assets just because of temporary policy restrictions.