Is it difficult to buy Crypto with a credit card in Taiwan? An article to solve your deposit troubles

Looking to invest in cryptocurrencies in Taiwan but keep hitting a wall with credit card payments? Don’t worry. Although Taiwan has restrictions on virtual currency payments, there are actually more deposit methods available than you might think. This article provides a comprehensive guide to buying crypto with a credit card, including policy background, cost analysis, and practical solutions.

Why Does Taiwan Restrict Credit Card Purchases of Virtual Currencies?

Many investors find that their credit cards cannot directly fund accounts on trading platforms. This is not a restriction imposed by the exchanges themselves but stems from regulatory policies in Taiwan. In 2022, Taiwan’s Financial Supervisory Commission (FSC) issued a letter to banks, clearly stating that credit cards are primarily for consumer payments and should not be used for high-risk speculative transactions. Therefore, the FSC requires credit card acquiring banks not to sign virtual asset service providers (VASPs) as authorized merchants.

What is the logic behind this policy? The main considerations include:

Anti-Money Laundering and Compliance Needs
The decentralized nature of cryptocurrencies makes it difficult for governments to regulate directly, and they can be exploited for money laundering or illegal transactions. Limiting payment channels is a direct risk control measure.

Market Volatility and Investor Protection
In recent years, numerous exchanges have collapsed, NFT bubbles burst, and investors have suffered losses, leading to complaints to authorities. While the government cannot control the market behavior of cryptocurrencies themselves, restricting deposit channels can reduce customer complaints.

Decentralization and Governance Challenges
In traditional financial markets, governments can stabilize markets through regulation. However, since cryptocurrencies are not governed by a single country, authorities feel they cannot effectively manage market risks.

It’s important to note that these restrictions do not completely block crypto investments but change the deposit methods. Many European and American banks, as well as global credit card companies like Visa and Mastercard, have already actively partnered with virtual asset providers. Taiwan’s restrictions are more conservative rather than an outright ban.

Comparing Three Deposit Methods: Credit Card, Wire Transfer, C2C

When buying crypto, there are multiple deposit options, each with pros and cons. Here is a detailed comparison of the three most common methods:

From a cost perspective, wire transfers are more economical for large investments despite being more cumbersome. Credit cards are suitable for small, quick investments.

Pros and Cons of Buying Crypto with a Credit Card

Advantages:

• Instant到账: Complete deposit with a few clicks, no waiting for bank processing
• Rewards: Some credit cards offer cashback or points
• Low Barrier: Friendly for small investors, no large initial capital needed

Disadvantages:

• Higher Fees: Usually 1.5%-3%, eating into profits
• Poor Exchange Rates: Card exchange rates are often 3%-5% worse than banks
• Large Investment Losses: For example, spending 100 units might only get you 95 units of crypto, and the larger the amount, the more significant the loss

For instance, investing 10,000 yuan could incur costs of 500-800 yuan just in fees and exchange rate differences, which could otherwise be used to increase holdings or diversify crypto assets.

Practical Deposit Options for Taiwanese Investors

Although Taiwan’s government restricts direct credit card crypto purchases, it does not specify the location of the acquiring institution, so other options remain available. Here are two supported and relatively secure investment channels:

Option 1: International Compliant Trading Platforms

Many international exchanges still support credit card deposits and are regulated by overseas financial authorities. These platforms typically:

• Offer two-factor authentication for account security
• Hold licenses from multiple regulators (e.g., ASIC, MFSA)
• Have Chinese interfaces friendly to Taiwanese users
• Support deposits in TWD or USDT and other currencies

The cost of buying crypto with a credit card on these platforms is usually around 2%-3%, plus 1.5%-2% exchange rate costs, totaling approximately 4%-5%.

Option 2: CFD Trading

If you only want to participate in crypto price movements without owning actual assets, consider regulated CFD (Contract for Difference) brokers. Compared to exchanges, CFD providers are under stricter financial regulation, reducing the risk of platform insolvency.

Advantages of CFDs include:

• 24/7 two-way trading (long and short)
• Flexible leverage and position sizing
• No trading commissions, only spreads
• Fast deposits and withdrawals via credit card

How to Buy Crypto with a Credit Card: Practical Steps

Different platforms have similar processes, generally:

1. Register an account → Complete KYC verification → Deposit funds → Trade → Withdraw

Step 1: Choose Cryptocurrency and Deposit Method
Select the crypto pair you want (e.g., BTC/USD, ETH/USD) and choose credit card as the deposit method.

Step 2: Set Purchase Amount
Enter the amount of crypto to buy, paying attention to currency units and exchange rates. Be aware of your credit card’s spending limit.

Step 3: Confirm and Pay
Fill in credit card details as instructed, complete verification (some platforms require 3D Secure), and wait for the deposit to arrive (usually instant or within minutes).

Step 4: Start Trading
Use the deposited funds to buy other cryptocurrencies (e.g., exchange USDT for BTC, ETH) or hold for appreciation.

Optimal Crypto Purchase Paths for Taiwanese Investors

Based on cost-effectiveness, Taiwanese investors currently have several recommended options:

Small, Quick Deposits: Use international platforms supporting credit card deposits to buy USDT or stablecoins directly, suitable for trial or small-scale accumulation.

Medium-Scale Investment: First buy USDT on domestic exchanges with TWD, then transfer to international platforms for diversified crypto holdings. This avoids credit card restrictions and keeps costs relatively low.

Large, Long-Term Holdings: Use wire transfers, which, despite longer processing times, offer the lowest costs—ideal for investors planning to hold long-term.

Summary

Credit cards used to be the most convenient way to buy crypto in Taiwan, but policy changes have led many banks to restrict or cease support. However, abandoning credit card purchases altogether is unnecessary—international compliant platforms still support this method, and CFD trading offers an alternative way to participate in the crypto market.

The key is understanding the cost structure of each deposit method. Credit cards are fast but expensive, suitable for small amounts; wire transfers are slow but low-cost, suitable for large investments; C2C trading offers flexibility but requires careful selection of counterparties.

Finally, always thoroughly understand the risks of virtual assets before investing, choose regulated platforms, and implement strong passwords and two-factor authentication to invest safely in Taiwan.