Taiwan’s Financial Supervisory Commission (FSC) denies banning bitcoin in the country.

The position of the FSC on bitcoin remains unchanged. Bitcoin isn’t considered a currency, therefore banks are required neither to receive nor to exchange them, but being recognized as a “virtual commodity” bitcoin is not prohibited in Taiwan. This statement was made by FSC in an email to CoinDesk.

Earlier this month FSC chief Tseng Ming-chung allegedly claimed bitcoin (and digital currency in general) was illegal, after a ransom in bitcoins was demanded by the kidnappers of Hong Kong tycoon Wong Yuk-Kwan. This gave way to rumours that cryptocurrency users might be prosecuted. However, the FSC has refuted these speculations.

Presently Taiwan’s official position on bitcoin remains strict and doesn’t encourage people to use it. It is prohibited to use bitcoin as a medium of payment. In its recent letter to CoinDesk the FSC emphasises the risk associated with bitcoin. In January 2014 Robocoin, a Las-Vegas based bitcoin ATM operator, was forbidden to install bitcoin ATMs in Taiwan. Early in 2014 the FSC together with the Central Bank of the Republic of China (Taiwan) issued a joint statement warning against bitcoin, indicating its volatility and the speculative nature of bitcoin trade. Both regulators then said bitcoin holders “should watch out for drastic volatility, malicious default, hacker attack, Internet theft and other risks,” Taipei Times reports.

At this time the FSC doesn’t say whether it is going to put any additional restrictions on digital currency operations.

Andrew Levich