The recent imB lending platform incident has heightened awareness about the need for secure and regulated cryptocurrency trading in Taiwan. In response, the Financial Supervisory Commission (FSC) announced plans to introduce regulations for Virtual Asset Service Providers (VASPs) by September. A key factor contributing to such incidents is that less than 10% of Taiwan's population currently uses cryptocurrencies, and there is a lack of正规渠道 for acquiring reliable knowledge. This guide aims to bridge that gap by providing essential information on exchanging New Taiwan Dollars (TWD) for cryptocurrencies using local exchanges.
Understanding TWD Deposit and Withdrawal Processes
The processes for depositing and withdrawing fiat currency are generally similar across most compliant exchanges in Taiwan.
How to Deposit TWD
To ensure user funds are not misused, compliant Taiwanese exchanges typically partner with specific banks to hold client TWD in segregated trust accounts.
- After completing account registration and verification, you transfer TWD into the exchange's designated trust account.
- You then use the deposited TWD to purchase cryptocurrency. The acquired crypto assets are held in your exchange account.
How to Withdraw TWD
- Sell your cryptocurrency on the exchange to convert it back to TWD. The proceeds are deposited into the trust account.
- Initiate a transfer to move the TWD from the trust account to your designated personal bank account.
The Concept of Blockchain Networks and Transfers
A crucial step for traders is moving assets between different exchanges or into private wallets. This requires understanding two key concepts: wallet addresses and blockchain networks.
Understanding Wallet Addresses
A wallet address is a unique identifier, much like a bank account number or a physical address. It is a long string of alphanumeric characters. It is highly advised to always use the copy function provided by the exchange interface rather than typing the address manually to avoid costly errors. Always double-check the first and last three characters of the address before confirming any transaction, as transfers to an incorrect address are often irreversible.
Understanding Blockchain Networks
A blockchain network can be thought of as a separate digital highway system. Different cryptocurrencies operate on different networks (e.g., Bitcoin on its own blockchain, USDT on Ethereum, Polygon, etc.). Transferring crypto from one wallet to another requires using the correct corresponding network.
These networks are maintained by miners or validators, and a transaction fee, often called a "gas fee," is required to process the transfer. This fee compensates the network participants for the computational resources used.
Some cryptocurrencies, like USDT, exist on multiple networks. When transferring them, you must ensure that both the sending and receiving platforms support the same network and that you have selected it. Sending USDT on the Ethereum network to a wallet address that only exists on the Tron network will result in the permanent loss of funds.
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An Overview of Cryptocurrency Exchanges in Taiwan
As of this writing, there are several prominent cryptocurrency exchanges operating in Taiwan, each with its unique features.
MAX Exchange
MAX is one of Taiwan's oldest and largest exchanges, established in 2018. It offers an order book trading model with good liquidity and trading depth. Its platform token is MAX Token.
- Security: Partners with Far Eastern International Bank for TWD trust accounts. Has physical offices in Taipei and Taichung.
- KYC: Identity verification typically takes 3-7 business days after registration.
- TWD Withdrawal: Requests submitted before 11:00 on a banking business day are processed by 17:00 the same day or the next. Requests after 11:00 take 1-2 business days.
ACE Exchange
ACE is another early, compliant exchange founded in 2018, with its own platform token, ACEX Token. It is known for its educational initiatives for beginners.
- Security: Partners with CTBC Bank for trust accounts. Maintains physical offices in Taipei, Taichung, and Kaohsiung.
- KYC: Requires real-name verification to begin trading.
BitoPro Exchange
BitoPro evolved from the BitoEX wallet service in 2014 and launched its exchange in 2018. It offers unique services like gift cards and debt subscriptions and has a partnership with FamilyMart convenience stores for crypto purchases.
- Security: Has a trust account arrangement with Far Eastern International Bank. Operates from a Taipei office.
- KYC: Real-name verification takes 1-3 business days.
- TWD Withdrawal: Requests before 14:30 on a banking day are processed by 18:00 the same day.
BITGIN Exchange
Founded in 2020, BITGIN uses a simple "exchange" model instead of an order book. It features automated tools like a TWD arbitrage bot and a smart lending bot.
- Security: Uses a CTBC Bank trust account and emphasizes legal compliance and anti-money laundering (AML) practices.
- KYC: Registration and verification take approximately 2-3 business days.
- TWD Withdrawal: Requests completed before 10:00 on a banking day are processed that afternoon.
HOYA BIT Exchange
Launched in 2022, HOYA BIT focuses on a user-friendly interface and regulatory compliance. Its standout product is a "Daily Interest" earnings program offering returns on stablecoins.
- Compliance: States it was one of the fastest exchanges to complete the FSC's AML compliance declaration.
RYBIT Exchange
As one of the newest exchanges, established in late 2022, RYBIT's focus is on providing competitive exchange rates for buying USDT.
- Security: Partners with CTBC Bank for client fund security.
XREX Exchange
Unlike the others, XREX focuses on international markets and cross-border financial services. It does not support TWD but facilitates USD deposits and withdrawals for users in many countries.
- Security: Maintains a foreign currency trust account with Far Eastern International Bank and employs a robust security team.
Comparing Exchange User Experiences
- Fees: ACE is known for relatively low trading fees, while MAX and BitoPro allow users to discount fees using their respective platform tokens.
- Trading Model: BITGIN, HOYA BIT, and RYBIT use a simpler exchange model, which can be easier for beginners.
- Liquidity & Selection: MAX, being the largest, generally offers better liquidity, tighter spreads, and a wider selection of cryptocurrencies.
- Withdrawal Fees: withdrawal fees vary by cryptocurrency and network. Promotions exist, such as free withdrawals on certain networks. Generally, networks like Polygon and XRP offer lower fees. For exchanges primarily dealing in USDT like RYBIT, using the BSC network is often a cost-effective choice.
- Transfer Speed: Transfer speeds are primarily dependent on network congestion and upgrades at the time of the transaction, not the exchange itself.
Frequently Asked Questions
What is KYC and why is it necessary?
KYC (Know Your Customer) is a mandatory identity verification process. Exchanges use it to prevent fraud, money laundering, and other illicit activities. It involves submitting government-issued ID and sometimes proof of address, making the ecosystem safer for all users.
What is the safest way to store my cryptocurrency?
For large amounts or long-term storage, a self-custody hardware wallet is considered the safest option. For active trading, using reputable exchanges that employ trust accounts for fiat and hold the majority of crypto assets in cold storage is a good practice. Always enable two-factor authentication (2FA).
What happens if I send crypto to the wrong address?
Unfortunately, most cryptocurrency transactions are irreversible. If you send funds to an incorrect or incompatible address, recovering them is often impossible. This highlights the critical importance of double-checking all address details before confirming a transfer.
Are my funds insured on these exchanges?
Most exchanges mentioned safeguard fiat currency through bank trust accounts. However, explicit insurance on cryptocurrency holdings, similar to bank deposit insurance, is not普遍 offered. It is crucial to review each exchange's specific terms regarding asset protection and security measures.
What is a gas fee?
A gas fee is a transaction fee paid to network validators to process and confirm transactions on a blockchain. Fees fluctuate based on network demand; busier networks typically have higher fees.
How do I choose the right exchange?
Consider your needs as a trader. Beginners may prefer platforms with an easy exchange model and educational resources. Active traders might prioritize low fees, high liquidity, and advanced order types. Always prioritize security features and regulatory compliance above all else.