Buying crypto with a credit card in Taiwan: Why does it fail? How can you succeed?

Looking to buy Bitcoin or other virtual currencies in Taiwan? Credit cards seem to be the most convenient option, but many people find their transactions always fail. Why is this happening? This article summarizes the core issues related to using credit cards for crypto purchases, helping you understand Taiwan’s policy restrictions and solutions.

Why does Taiwan restrict credit card purchases of crypto?

Currently, most banks in Taiwan no longer allow direct deposits via credit cards to buy virtual currencies. This stems from a directive issued in 2022 by the Financial Supervisory Commission (FSC), which explicitly states: Credit cards are payment tools for consumption and should not be used for high-risk speculative transactions. The FSC requires banks and credit card acquiring institutions not to cooperate with virtual asset service providers.

Why does the government do this?

Risk Management Considerations

• Prevent money laundering: Virtual currencies can be used for illegal activities, requiring strict KYC and AML reviews
• Regulatory challenges: The decentralized nature of cryptocurrencies makes direct government intervention difficult
• Investment protection: Recent exchange closures and NFT crashes have caused retail investors to lose money, leading to numerous complaints directed at the FSC

Policy Contradictions The government faces a dilemma: banning investments might be criticized as authoritarian, but if investors incur losses, they come to protest. Therefore, restrictions are placed on service providers rather than outright banning citizens from investing.

It’s worth noting that compared to Taiwan’s strict policies, banks in Europe and America, along with international payment giants like Visa and Mastercard, are actively embracing cryptocurrencies. Taiwan’s regulations are more symbolic; they do not completely block investment channels in practice.

Comparison of crypto deposit methods

When buying virtual currencies, common deposit channels include credit cards, bank wire transfers, C2C transactions, and third-party payments. Below compares the three most used methods:

The true cost of credit cards

Using a credit card to buy crypto costs much more than you might think:

• Transaction fee: 2~3%
• Exchange rate spread: 3~5% worse than market rates
• Overseas card surcharge: 1.5~2%

Result: Spending 100 TWD via credit card might buy only 94~95 TWD worth of crypto

For small investors, the convenience can offset the costs; but large investors usually prefer bank wire transfers because fixed fees diminish proportionally as transaction size increases.

Pros and cons of buying crypto with credit cards

Advantages

• Instant settlement: Funds are available immediately without waiting for bank processing
• Simple operation: Complete in just a few taps on a mobile app
• Reward points: Earn credit card cashback or points
• Friendly for small amounts: Easier for investors with limited capital to enter

Disadvantages

• High fees: Starting at 1.5%, sometimes up to 3%
• Poor exchange rates: Larger spreads on international conversions
• Lower investment efficiency: Higher costs eat into returns on large transactions
• Policy restrictions: Low acceptance among Taiwanese banks

How Taiwanese investors actually buy virtual currencies

Although Taiwan restricts direct credit card purchases of crypto, there are other investment channels:

Option 1: Use domestic exchanges
Buy USDT stablecoin with TWD, then transfer to other exchanges to purchase Bitcoin or other target coins.

Option 2: C2C purchases on international exchanges
Use the C2C (peer-to-peer) feature on major international exchanges to negotiate and buy virtual currencies directly from sellers.

Option 3: Contract for difference (CFD) trading
Some internationally regulated brokers offer crypto CFDs, supporting credit card deposits. This method only involves price speculation without holding actual assets, offering more flexible trading.

Complete guide to buying crypto with credit cards

Below is the basic process (details may vary slightly across platforms):

Step 1: Register and verify identity
Choose a platform that supports credit card deposits, fill in basic info, and complete KYC verification.

Step 2: Enter trading interface
On the platform’s homepage, go to the crypto trading section, select the desired coin (e.g., BTC/USD).

Step 3: Select credit card payment
Click “Deposit”, choose “Credit Card” as payment method.

Step 4: Enter amount and confirm
Input the purchase amount and credit card details as prompted, then confirm the transaction.

Step 5: Wait for funds to arrive
Credit card payments usually settle within minutes, after which you can proceed with further trading.

Key considerations when choosing a platform

In the absence of official recommended platforms, consider:

• Regulatory license: Ensure the platform is supervised by legitimate financial authorities
• Security mechanisms: Support for 2FA, fund segregation, and other protections
• User reviews: Check market feedback and complaint records
• Transparent fees: Clear cost structures without hidden charges
• Ease of withdrawal: Ability to quickly cash out funds

Conclusion: Practical options for Taiwanese investors

Credit cards used to be the most convenient way to buy crypto, but current policies significantly restrict this method in Taiwan. However, policy restrictions do not completely block investment pathways—they just increase the cost and complexity.

Recommendations for different investors:

• Small investors: The convenience of credit cards justifies the 5~8% total cost
• Medium investors: Try different credit cards or consider C2C purchases
• Large investors: Bank wire transfers have the lowest cost (0.2~0.5%), though slower, and are more economical

Regardless of the method chosen, safety always comes first. Understand policy restrictions, evaluate each deposit method’s pros and cons, and select reputable platforms—that’s the correct approach for investing in crypto in Taiwan.