Key Developments (07/28–08/03)
Crypto Adoption in Taiwan
BitoEX CTO Lin Shu-Wei revealed that Taiwan now has 300,000–500,000 cryptocurrency users, based on BitoPro's 200,000+ user base and estimates of over-the-counter (OTC) cash transactions. Lin noted that off-exchange trading volumes are 5x higher than on-platform activity.
BitoPro, which raised NT$600 million (~$20M) via an ICO in May, now offers ICO consulting services. Clients primarily hail from Japan, Hong Kong, Singapore, and China. Lin highlighted a 100% YoY growth in global ICOs as of July.
LINE Financial Expands into Taiwan
LINE officially established its LINE Financial Taiwan筹备处 (preparatory office) to pursue a digital banking license. Key initiatives:
- 普惠金融: Gamified interfaces, LINE chatbots, and AI-driven investment tools for younger users.
- Ecosystem Growth: Collaborate with local banks under regulatory frameworks.
- Cross-Border Partnerships: Partner with ≤5 domestic banks for the license bid.
The team seeks non-IT talent in fintech, compliance, and consumer behavior analytics.
Crypto Taxation Alert
Accountant Zhu Cai-Bao warned that crypto trades are taxable under Taiwan’s commodity classification. Key points:
- 5-year audit risk: Tax authorities may track bank transactions retrospectively.
- ICO limitations: Funds raised via ICOs (NT$10M–900M) may suffice for startups but not scaling firms.
- IPO conflicts: Big Four accounting firms avoid ICO audits, complicating future IPOs.
HTC’s Blockchain Phone Gains Litecoin Founder as Advisor
HTC’s Exodus blockchain smartphone (launching Q3 2018) will feature:
- DApp support and built-in nodes for Bitcoin/Ethereum.
- Universal wallet for peer-to-peer crypto transfers.
Litecoin creator Charlie Lee joined as an advisor, confirming Litecoin/Lightning Network integration.
Taiwan’s First E-Payment Merger Approved
智付寶 (PiPay) merged with Taiwan Electronic Payment, rebranding as ezPay簡單付. The merger aims to:
- Streamline resources among Taiwan’s 6 licensed e-payment providers.
- Ensure uninterrupted user services post-transition.
Japan’s Mobile Payment Boom
Amazon and SoftBank target Japan’s 80% cash-dominated market:
- Amazon Pay: QR-code payments via Nippon Pay (piloting in Fukuoka).
- SoftBank/Yahoo’s PayPay: Collaborates with India’s Paytm for QR-based transactions (launching autumn 2018).
Tech Giants Ban Crypto Mining Apps
- Google Play joined Apple in banning mining apps (e.g., MinerGate).
- Microsoft warned of malicious PDF editors bundling Monero-mining malware.
Apple Pay to Dominate Mobile Payments by 2020
Juniper Research forecasts:
- $2T in global contactless payments by 2020.
- 50% market share for Apple Pay (225M users).
FAQ
Q: How many crypto users are in Taiwan?
A: Estimated 300,000–500,000, with OTC trades 5x larger than exchange volumes.
Q: Will LINE’s digital bank launch in Taiwan?
A: Pending license approval, LINE Financial plans to collaborate with local banks.
Q: Are crypto profits taxable in Taiwan?
A: Yes—crypto trades are treated as taxable商品 transactions with a 5-year audit window.
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