From what I can see, they're just reminding people that bitcoin is 'not legal tender' in Taiwan just like everywhere. Now whether this implies illegality, or a ban, depends on where you live I suppose but I doubt they'll be shutting down any Taiwanese exchanges.Headlines like this have the potential to scare away investors, though.
In our country also they use the same which says its not a legal tender. This means that the banks cannot use this . Now does it also means that business cannot use it and if it happens than country is on its way to ban the cypto currency in their country. If it starts happening than many country may ban this currency.
Banks avoid using bitcoin because they know bitcoin can beat them in the war of currency and make their use limit. People gets attracted to bitcoin because they know it can provide them ease and comfort. Why the governments are hiding their incompetence by banning bitcoin.
They can also make their currency strong by making it as comfortable as bitcoin. Crimes are not linked with bitcoin they are linked with the mentality of the people