Recently, someone asked me about buying cryptocurrencies with a credit card, and I realized there are quite a few restrictions here in Taiwan. I initially thought buying virtual currencies with a credit card would be as simple as shopping online, but since 2022, the Financial Supervisory Commission in Taiwan has banned banks from allowing virtual asset platforms to be designated as credit card merchants. Basically, most banks' credit cards can't be used for this.

I looked into the reasons, mainly because the government is worried about money laundering and risk control issues. Plus, over the past few years, many exchanges have gone bankrupt, and investors losing money have been turning to the government, which has become quite annoyed. Honestly, banks and credit card companies in Europe and America have long been cooperating with cryptocurrencies, but Taiwan is much stricter. However, regardless of policies, the importance of cryptocurrencies is still increasing, and some countries have even adopted Bitcoin as legal tender.

So what if you really want to buy coins with a credit card? I summarized that the biggest problem with buying crypto via credit card is the high transaction fee, usually between 1.5% and 3%, plus exchange rate differences that can be 3% to 5% worse than banks. When you do the math, you might only get about 95% of the value in virtual currency for every 100 yuan spent. Small investors might accept this, but those making large investments usually prefer wire transfers because they have fixed fees, which become more cost-effective as the amount increases.

But honestly, buying crypto with a credit card still has advantages—it's quick, convenient, and you can earn rewards. For people testing the waters with small amounts, it's pretty good. However, in Taiwan, using a credit card to buy crypto is indeed restricted. Some platforms might still support it, but options are fewer now. I’ve switched to wire transfers or C2C trading; although the process is a bit more complicated, the long-term savings on fees are quite significant. If you really want to buy with a credit card, you can try different cards or look for platforms that support it, but make sure to do your homework to avoid getting scammed.