Banking Crypto Ban in Taiwan: What It Means for Users and How to Stay Legal

When people talk about a banking crypto ban in Taiwan, a practical restriction where banks refuse to process transactions linked to cryptocurrency exchanges or wallets. Also known as crypto banking restrictions, it’s not a law against owning Bitcoin or Ethereum—it’s a financial firewall built by banks under pressure from regulators. You can still buy, sell, and hold crypto in Taiwan. But if you try to deposit USD or TWD from a bank account into Binance or OKX, your transfer might get blocked, flagged, or reversed. This isn’t about legality—it’s about banking policy.

Taiwan’s Financial Supervisory Commission doesn’t outlaw crypto. In fact, they’ve issued licenses to local exchanges like Kuna and BitMEX’s former partners. But banks, fearing money laundering risks and regulatory penalties, have gone further than the law requires. They treat any crypto-related transaction as high-risk, even if you’re just buying ETH from a peer-to-peer seller. This creates a strange gap: crypto is legal to own, but hard to fund through normal channels. That’s why many users turn to peer-to-peer platforms like Paxful or local Facebook groups to trade cash for crypto. Others use non-bank payment services like PayPal or Wise to move money, then transfer to exchanges that accept those deposits.

The crypto exchange Taiwan, local platforms that operate under Taiwan’s financial guidelines and often support TWD deposits are still active, but they’ve had to adapt. Some now offer OTC desks for large buyers, while others partner with licensed payment processors to bypass bank blocks. Meanwhile, the Taiwan crypto regulations, a framework that requires exchanges to register, verify users, and report suspicious activity have pushed many smaller platforms out of the market. Only those with strong compliance teams survive.

If you’re in Taiwan and want to trade crypto, you’re not stuck—you just need to work around the banking wall. Use P2P, use non-bank gateways, or buy crypto directly from someone in person. Many users now keep their funds on exchanges outside Taiwan and only move small amounts when needed. The crypto banking restrictions, the unofficial but powerful barrier that keeps crypto out of the traditional banking system won’t disappear overnight. But smart users have found ways to operate inside the rules, even when the banks aren’t playing along.

Below, you’ll find real cases of what happens when banks block crypto payments, how people in Taiwan are still trading without getting flagged, and which platforms still work despite the restrictions. These aren’t theoretical guides—they’re stories from users who’ve navigated the system and survived.