Bitcoin is not a currency, but a virtual commodity

     China Business Network, November 3: According to Taiwan media reports, Taiwan's "Central Bank" said that Bitcoin is not a legal tender, so Bitcoin transactions should be regarded as virtual commodity transactions. If consumers are defrauded due to Bitcoin transactions, the "Consumer Protection Law" applies; if someone uses Bitcoin to launder money, the "Money Laundering Prevention Law" applies.

According to reports, a Hong Kong businessman was kidnapped in Taiwan recently, shocking the society; the kidnappers demanded a ransom in Bitcoin, which once again brought the Bitcoin controversy to the fore. KMT legislator Tsai Cheng-yuan questioned the Financial Supervisory Commission Chairman Tseng Ming-tsung at the Legislative Yuan Finance Committee today, saying that Bitcoin was not only used as ransom, but could also be purchased at FamilyMart convenience stores’ FamiPorts, “Is Bitcoin an acceptable currency in Taiwan?”

Zeng Mingzong responded that Bitcoin is an illegal payment tool in Taiwan, and the current legal tender authority is the "Central Bank". The "Financial Supervisory Commission" will cooperate with the "Central Bank". If it is an illegal behavior, it will cooperate with the "Central Bank" to understand and investigate illegal use on the Internet.

The "Central Bank Business Bureau" stated that Bitcoin is not a transaction medium that is generally accepted by the general public, and its value is unstable . It does not have the function of accounting unit and value storage, and lacks the characteristics of real currency. In addition, Bitcoin has no legal effect, and there is no issuance preparation and redemption guarantee. Holders must bear the risk of possible failure to redeem or circulate.

The central bank officials pointed out that after collecting the regulatory methods of Bitcoin in various countries, they found that no country has enacted special laws for Bitcoin, but instead handed over the issues involved in the Bitcoin transaction process to the competent authorities. At present, the central bank still regards Bitcoin as a virtual commodity, and the public's trading of Bitcoin is considered a virtual commodity transaction.

Officials said that if people are defrauded due to trading Bitcoin, it involves the "Consumer Protection Law" and should be handled by the Consumer Foundation and the prosecutors and investigators; if someone uses Bitcoin to launder money, it involves the scope of the "Money Laundering Prevention Law" and falls under the management of the "Financial Supervisory Commission" and the prosecutors and investigators. The "Central Bank" will continue to pay attention to Bitcoin-related issues, and based on the authority of the "Central Bank", if financial institutions handle Bitcoin-related businesses, they will take necessary measures in accordance with relevant "laws".