#Public Sector

Taiwanese regulators issue warning against use of Bitcoin

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Financial regulators of multiple countries have handed out warnings against the use of virtual currencies like Bitcoins and the latest to join the list is Taiwan. The country’s Financial Supervisory Commission (FSC) and Central Bank have warned citizens against the use of Bitcoin stating that the virtual currency is volatile and it doesn’t have any legal protection.

In a joint statement [Google Translated] the FSC and Central Bank warned that Bitcoin hasn’t been issued by any monetary authority of any country and is not a legal tender. The FSC dubbed Bitcoin as highly speculative “virtual goods” and warned that users of the virtual currency should keep in mind risks such as large price fluctuations; theft; hacking of trading platforms; government shutdown; and lack of protection of proprietary risk while using Bitcoin.

FSC and Central Bank revealed that they may be forced to take necessary steps if financial institutions of the country engaged in Bitcoin business.

Taiwan’s warning to Bitcoin users in the country comes days after China imposed a ban restrictions on the virtual currency. India has also cautioned users of Bitcoin in the country against the risks involved with trading and holding the virtual currency.