Adjustment of Transfer Account Services to Ensure Customer Fund Security
Chunghwa Post announced that in order to strengthen account security protection, it will cease and terminate the relevant services for designated transfer accounts belonging to “virtual currency platform deposit accounts.” This adjustment will take effect on May 28, 2025, affecting the transfer functions of financial cards, online postal services (including APP), and telephone voice channels.
Stop Accepting New Transfer Account Setup
Effective immediately, Chunghwa Post will no longer accept (including at counters and online) the establishment of designated transfer accounts belonging to “virtual currency platform deposit accounts.” This ban applies to all automated platforms, including financial cards, online postal services, and telephone voice services.
Existing Transfer Accounts Will Be Terminated Starting May 28
For the already established designated transfer “virtual currency platform deposit accounts,” the following adjustments will be made starting May 28, 2025:
- Termination of Service: The original designated transfer “virtual currency platform deposit account” settings will be terminated and removed from the “designated transfer account list” of each automated platform.
- Service Suspension: The service for transferring to “virtual currency platform deposit accounts” will be completely stopped, and it will no longer be possible to conduct deposit operations through the existing channels.
Affected Accounts: Far Eastern, KGI, Fubon
According to the “Virtual Currency Platform Deposit Account Rules Table,” the affected accounts include deposit accounts from various platforms such as Far Eastern Bank (805), KGI Bank (809), and Fubon Bank (012), for example:
- Far Eastern Bank: 1020xxxxxxxxxxxx, 1022xxxxxxxxxxxx
- KGI Bank: 005286xxxxxxxxxx, 005460xxxxxxxxxx
- Fubon Bank: 0028181xxxxxxxxx
These banks are commonly used custodial banks for trading on the exchanges in Taiwan, indicating that postal users will not be able to make large daily deposits to exchanges through designated transfers.
Reminder for Users to Pay Attention and Adjust in Advance
Chunghwa Post emphasizes that this policy aims to protect customer account security and avoid potential cybersecurity risks. If customers still have relevant deposit needs, it is advisable to adjust their account configurations as soon as possible to avoid impacting fund flow after the service termination.
Potential Component of the “Chokepoint 2.0” Strategy
The decision by Chunghwa Post to terminate virtual currency platform deposit accounts indeed evokes thoughts of the United States’ “Operation Choke Point 2.0” strategy. This strategy, led by the U.S. government, cuts off funding channels to specific industries (such as cryptocurrency, firearms, adult industries, etc.) through financial institutions, indirectly impacting industry development. Although there is currently no clear similar plan in Taiwan, Chunghwa Post’s actions will undoubtedly create obstacles for the flow of funds in the cryptocurrency industry in Taiwan, exhibiting certain “choke point” characteristics.
Why Is It Considered a “Chokepoint”?
- ✅ Cutting Off Funding Sources: Stopping deposit accounts means that Taiwanese users will find it difficult to directly convert fiat currency to cryptocurrency through Chunghwa Post, obstructing the flow of funds, which is a typical “chokepoint” tactic.
- ✅ Limiting New Users’ Market Entry: Stopping the establishment of new transfer accounts will make it difficult for new users to enter the market, creating limitations for local cryptocurrency exchanges or platforms in Taiwan.
- ✅ Reducing Market Liquidity: Inability to easily transfer to accounts on virtual currency platforms will lead to decreased market liquidity, affecting overall trading volume.
Protecting Consumers or Restricting Industry?
Although Chunghwa Post emphasizes that this measure is to “ensure account usage security,” from the market perspective, it may also signal the government’s further restrictions on the cryptocurrency market. Considering the surge in global cryptocurrency fraud cases in recent years, the government might intend to block the flow of funds to unclear platforms, but this action simultaneously suppresses the development of legitimate exchanges, putting significant pressure on legal trading platforms.
Taiwan’s Cryptocurrency Industry May Face “Passive Contraction”
If this policy becomes a common practice among Taiwan’s financial institutions, it could lead to:
- User Migration to Overseas Platforms: After local platforms are restricted, Taiwanese users may transfer their funds to overseas exchanges, resulting in capital outflow.
- Increased Risks of Underground Trading: Some investors may turn to non-regular channels for trading, thereby increasing the risks of fraud and money laundering.
Policy Effects Need to be Observed, But Industry May Be Suppressed
Although Taiwan has not explicitly stated that this is a “Chokepoint” strategy against cryptocurrency, the results are likely to resemble the effects of “Chokepoint 2.0.” If other financial institutions follow suit, the Taiwanese cryptocurrency market will face greater survival challenges. Therefore, whether this policy is a singular event or a precursor to a larger strategy remains to be observed.
Risk Warning
Investing in cryptocurrency carries high risks, and its price may fluctuate dramatically. You may lose all of your principal. Please assess risks carefully.