Taiwan 2024 Cryptocurrency Getting Started Tutorial: Complete Process from Fiat to Bitcoin

In the post-2024 cryptocurrency market, Taiwan’s regulations and usage environment have advanced significantly. This article will take you through the complete process of how to legally and securely purchase Bitcoin using Taiwan Dollars, from opening an account, to exchange registration, identity verification, depositing, and tax concepts, all organized as follows.

Taiwan’s Regulatory Progress: Virtual currency has been incorporated into the regulatory mechanism

Since 2024, the Taiwan government has explicitly established a “Virtual Money Union” and required operators to comply with anti-money laundering regulations. As of September 26, 2024, a total of 26 exchanges have completed the Statement of Compliance and are considered legal and compliant cryptocurrency trading platforms in Taiwan.

Requirements for a legitimate exchange

• Completion of the AML statement
• Accept KYC
• Support for Taiwan Dollar deposits and cryptocurrency trading

Illegal OTC trading is expressly prohibited.

It is illegal to exchange fiat and virtual currencies other than through licensed exchanges, and it is especially important to avoid private transactions and clandestine money exchanges.

What should I do if I can’t transfer fiat currency directly to international exchanges?

Bank accounts in Taiwan are currently unable to connect directly to international exchanges such as Coin, OKX, etc., and must therefore use local licensed exchanges as a bridge.

The most common procedure:

1. Transfer Taiwan Dollars to a local exchange (e.g. MAX, BitoPro).
2. Buy USDT (or USDC)
3. Transfer USDT to international platforms such as CoinOn, OKX, etc.
4. Follow-up investment operations on international platforms

Recommended Local Exchanges: MAX vs BitoPro Comparison

These two exchanges are two of the largest and most trusted exchanges in Taiwan, both founded in 2014, with full licenses, deep liquidity and user numbers.

Cost Comparison (Fee)

Both offer VIP handling fee and up to 20% discount on referral codes.
All deposits in Taiwan dollars are held in a trust account established by Far Eastern Bank for greater financial security.

Registration and Education: From Account Opening to Actual Deposits

Step 1: Register your account

• Go to APP Store or Google Play to download MAX or BitoPro App.
• Use Email to register and set password
• Enter referral code (to get handling fee discount)

Step 2: KYC Authentication

• Upload your ID card, driver’s license or passport.
• Bind cell phone number and Email
• Verify bank account (Far East Bank is recommended)

Step 3: Deposit and Buy Cryptocurrency

• Login to the exchange → Wallet → select “TWD”.
• Transfer to the dedicated account provided by the exchange
• After depositing Taiwan Dollars, you can go to “Trading” → “USDT/TWD” to purchase.

Necessity of using international exchanges

Local exchanges are suitable for “deposit/withdrawal” but have fewer functions, and are suitable as a “bridge to the currency world”.

In contrast, international exchanges such as Binance and OKX offer hundreds of currency options:

• Hundreds of currencies to choose from
• Contract trading/financing/NFT/airstrike/robot trading
• Lower transaction fees and better exchange rates

Suggestion: Transfer USDT from local exchange to international exchange for investment and operation.

Tax Concept: Should cryptocurrency trading be taxed?

Principle: If you make a profit, you should file an income tax return.

According to the communication between accountants and the IRS, cryptocurrency is a “capital gain” and should be included in one’s comprehensive income tax.

The Myth of Overseas Income and Allowances

Many people are under the mistaken impression that they can claim a foreign tax exemption if they withdraw money from an overseas exchange. However, the IRS is more concerned with “where the profits are generated”. If the profits come from international platforms such as Binance, OKX, etc., in principle, they can be claimed as overseas income and are subject to the $6.7 million tax exemption, but complete records must be kept to support the claim.

Profits from local exchanges should be subject to Taiwan income tax.

Profits from MAX, BitoPro and other platforms should be included in the consolidated income tax according to the law.

Practical Conclusion and Recommendations

• Use legal and compliant exchanges (MAX, BitoPro) as an entry tool.
• Learn how to use cold wallets to store assets for long term investments
• File tax returns when you make money on your trades.
• If you are claiming a tax allowance, remember to keep proper records of where your profits come from and where they are generated.