What Are "Buying U" and "Sending U"?
In cryptocurrency circles, phrases like "Do you accept U?", "Can you send me the payment in U?", or "Where are you buying U these days?" are commonly heard. But what exactly does "U" mean?
The term U refers to USDT (Tether), the most widely used and largest-market-cap stablecoin in the world. Often called Tether or Tai-da bi (泰達幣) in Chinese-speaking regions, USDT is a digital asset pegged 1:1 to the US dollar. Its value is backed by reserves of cash and cash equivalents such as U.S. Treasury bonds.
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Launched in 2014 by Tether Limited, USDT was the first-ever stablecoin, designed to combine the stability of fiat currency with the speed and accessibility of blockchain technology. According to CoinMarketCap, as of 2025, USDT consistently ranks third in total market capitalization among all cryptocurrencies—behind only Bitcoin (BTC) and Ethereum (ETH)—with a circulating supply exceeding $100 billion.
Another major player in the stablecoin space is USDC (USD Coin), launched in 2018 by Circle in partnership with Coinbase. Currently the second-largest dollar-pegged stablecoin, USDC holds a strong reputation for transparency and regulatory compliance.
Why Buy U? The Role of USDT in Crypto Trading
Unlike volatile cryptocurrencies such as Bitcoin or Solana, USDT is not intended for speculation or long-term investment. Instead, its primary function is to serve as a stable transaction medium within the digital asset ecosystem.
Key Uses of USDT:
- Trading Pair Standard: Over 80% of Bitcoin trades globally are executed using USDT as the counter currency (per CryptoCompare). This makes it the backbone of liquidity across exchanges.
- Value Preservation: Traders often convert profits into USDT during market downturns to avoid losses from price swings.
- Cross-Border Transactions: Businesses and individuals use USDT for fast, low-cost international transfers without traditional banking delays.
- Hedging Against Inflation: In economies with high inflation or currency instability, users hold USDT to preserve purchasing power.
XREX co-founder and Group CEO Wayne Huang highlights additional benefits: "Stablecoins enable financial inclusion, reduce remittance fees, and connect emerging markets to global finance—all while operating on decentralized networks."
Even small investors can benefit. You don’t need to buy an entire Bitcoin—just like fractional stock investing, you can purchase small amounts of USDT and use it to enter the crypto market gradually.
Is Buying USDT Legal in Taiwan?
Despite frequent media reports linking USDT to scams, owning or trading USDT is not illegal in Taiwan. The confusion stems from misuse rather than inherent illegality.
Regulatory Status in Taiwan
The Financial Supervisory Commission (FSC) classifies cryptocurrencies as virtual currencies, not legal tender. However, they are recognized as legitimate digital assets under anti-money laundering (AML) regulations.
Since 2023, Taiwan has implemented stricter oversight:
- The FSC requires all virtual asset service providers (VASPs) to register under the Anti-Money Laundering Act.
- As of 2025, 26 platforms have completed compliance declarations and are listed on the FSC’s official registry.
- A new draft regulation—the Virtual Asset Service Provider Registration Rules—is set to formalize licensing requirements, mandating full registration within nine months of enactment.
This means that while USDT itself is legal, the platforms used to trade it must be compliant to ensure user protection.
⚠️ Important: Using unregulated peer-to-peer sellers or offshore exchanges increases risk of fraud, loss of funds, or involvement in money laundering investigations.
Like email or phone calls, USDT is a neutral tool—its legality depends on how it's used. Scammers may exploit its speed and irreversibility, but this doesn’t make the asset itself unlawful.
Where to Buy USDT Safely in Taiwan
To protect yourself when buying USDT, always choose platforms regulated by Taiwan’s authorities.
Recommended Steps:
- Check the FSC’s Official List: Only use platforms listed in the List of VASPs That Have Completed AML Compliance Declarations.
- Avoid Unregulated P2P Sellers: Private sellers on social media or messaging apps often lack dispute resolution mechanisms.
- Use Reputable Local or Global Exchanges: Prioritize those with KYC (Know Your Customer), cold storage, and insurance coverage.
As regulatory frameworks evolve, registered platforms will offer greater transparency, fund security, and legal recourse.
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How to Avoid USDT-Related Scams
Scammers frequently target newcomers with promises of high returns or fake investment opportunities involving USDT. Here’s how to stay safe:
Common Red Flags:
- “Double your USDT in 24 hours!” – Guaranteed returns are almost always scams.
- Requests to send USDT to unknown wallets via Telegram, LINE, or email.
- Fake customer support pages mimicking real exchanges.
- Pressure to act quickly without time to verify details.
Best Practices:
- Never share your private keys or seed phrases.
- Double-check wallet addresses before confirming transactions.
- Use two-factor authentication (2FA) on all accounts.
- Stick to known, regulated platforms.
Remember: Blockchain transactions are irreversible. Once USDT is sent, recovery is nearly impossible unless the recipient cooperates.
Frequently Asked Questions (FAQ)
Q: Is USDT backed by real dollars?
A: Yes. Tether claims each USDT is backed 1:1 by reserves including cash, cash equivalents, and U.S. Treasuries. While audits have been controversial in the past, increased transparency efforts continue into 2025.
Q: Can I convert USDT back to New Taiwan Dollars (NTD)?
A: Yes—through licensed exchanges that support NTD trading pairs. Always use FSC-compliant platforms for withdrawals.
Q: Are stablecoins like USDT safer than other cryptocurrencies?
A: They are less volatile, but not risk-free. Risks include issuer insolvency, regulatory changes, and smart contract vulnerabilities.
Q: Does using USDT violate Taiwan’s banking laws?
A: No—if you use approved platforms. However, large unexplained transfers may trigger AML checks.
Q: What happens if Tether collapses?
A: While unlikely due to diversified reserves, a failure would severely impact global crypto markets. Diversifying across stablecoins like USDC can mitigate risk.
Q: Can I be taxed for holding or trading USDT?
A: Profits from converting USDT to NTD or other assets may be subject to capital gains tax under future tax guidelines. Keep records of all transactions.
The Future of Stablecoins in Taiwan
With the implementation of formal VASP registration rules and growing institutional adoption, Taiwan is moving toward a more secure and transparent digital asset environment. As stablecoins become integral to cross-border commerce and financial inclusion, regulatory clarity will empower users while curbing illicit use.
Whether you're a beginner exploring crypto or a business handling international payments, understanding what U means, where to buy it safely, and how to avoid scams is essential.
👉 Stay ahead in the evolving world of digital finance—secure your assets with trusted tools today.
By focusing on compliance, education, and security, users can confidently engage with USDT as a practical financial tool—not just another speculative asset.