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Government warns of risk in dealing with Bitcoin
Central News Agency
2013-12-30 11:12 PM
Taipei, Dec. 30 (CNA) Taiwan's central bank and Financial Supervisory Commission (FSC) on Monday warned the public of the high risk of Bitcoin, saying that investors will bear full responsibility for any losses themselves. FSC officials said the Central Bank of the Republic of China (CBC) has established that bitcoins do not constitute a currency and that banks certainly should not accept it. The officials said Bitcoin is a highly speculative "virtual product" that lacks a mechanism to protect transactions. Because Bitcoin is highly volatile, investors who invest in or trade bitcoins will have to fully assume the trading risk themselves. The officials also said that financial institutions should be on the watch for money laundering, noting that other countries have been found to have used Bitcoin as a tool for drug trafficking, money laundering and smuggling. The central bank said that after China announced its restrictions on the virtual currency, its price has plunged. The CBC has collected regulations on Bitcoin from other countries, including China, Indonesia, Thailand, Norway, Denmark, and the United States. In China, where Bitcoin transactions are the highest in the world, the price dropped to US$690 on Dec. 25 after peaking on Nov. 29 at an equivalent of US$1,242. According to the information collected by the CBC, the price of Bitcoin was only US$13 early this year. (By Stacy Wu, Kao Chao-fen and Lilian Wu)
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