South Korea Considers Banning Cryptocurrency Purchases with Credit Cards
Date: 2024-01-04 Author: Dima Zakharov Categories: IN WORLD
South Korea Contemplates Credit Card Ban on Crypto Purchases
In a significant development, the South Korean Financial Services Commission (FSC) is considering introducing a new regulation that would prohibit the use of credit cards for purchasing cryptocurrencies. The proposal aims to address concerns surrounding the outflow of domestic funds from credit cards and their potential misuse in illicit activities.
Regulator's Concerns
The primary reason behind this proposed ban is the FSC's apprehension regarding the acquisition of digital assets on foreign cryptocurrency exchanges. The FSC believes that citizens using credit cards to buy cryptocurrencies from overseas platforms could pose risks to the country's financial stability. They are particularly concerned about the potential misuse of these cards for money laundering and speculative trading.
Public Feedback and Legislative Process
The FSC has initiated a public consultation period for gathering feedback on its proposal, which is set to run until February 13. If the feedback is positive, the proposal is expected to be considered by the South Korean parliament in the first half of this year.
Recent Regulatory Developments
This move follows South Korea's requirement in 2021 for its citizens to use local cryptocurrency exchanges for trading digital assets. Licensed exchanges are now mandated to accept deposits and facilitate withdrawals exclusively for verified users. Additionally, South Korean officials were recently obligated to disclose their cryptocurrency investments as part of increasing regulatory scrutiny in the country.
