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Taiwan's central bank governor comments on SQUID token

Public warned against risks tied to cryptocurrency investment after new digital token shoots from US$0.012 to US$100 in 7 days

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Squid Game (Reuters photo)

Squid Game (Reuters photo)

TAIPEI (Taiwan News) — In a legislative committee meeting on Monday (Nov. 1), Central Bank Governor Yang Chin-long (楊金龍) warned investors of legal and financial risks tied to cryptocurrency investing.

Bitcoin has recently reached a US$67,000 (NT$1.9 million) all-time high, leading a crypto market rally that has included the emerging play-to-earn digital token Squid Game (SQUID). The new token began trading at US$0.01235 on Oct. 27 but has shot up to over US$100 in seven days.

Inspired by though not officially associated with the Korean Netflix show, the token was trading at US$100.88 at 3:40 PM (GMT+8) on Monday, with its market capitalization surpassing US$67 billion, according to CoinMarketCap.

In response to questions from a legislator about how the central bank would deal with crypto mania and the rising digital token SQUID, Yang said there are a myriad of other cryptocurrencies out there and cautioned against investing in the volatile and speculative digital assets.

Yang indicated that although the trading volume of cryptocurrencies in Taiwan is relatively low compared to other markets, the central bank has still added the relevant cryptocurrency exchanges to its monitoring list in order to combat money laundering.

To protect Taiwanese investors, the country's financial regulator is mulling a plan to regulate the trading platforms and require real-name crypto trading to close loopholes, the central banker commented.

Taiwan's central bank governor comments on SQUID token
(CoinMarketCap image)