Share this article
South Korea’s financial regulator proposed banning the use of credit cards to buy cryptocurrency, citing concerns over illegal capital outflows and anti-money laundering risks.
“Concerns have been raised about illegal outflow of domestic funds overseas due to card payments on overseas virtual asset exchanges, money laundering, speculation, and encouragement of speculative activities,” the Financial Services Commission (FSC) said in a notice.
Under the proposal, cryptocurrencies would be designated as “prohibited for payment” under the country’s credit finance laws. If implemented, such a rule would bar consumers from buying digital assets with credit cards from both domestic and foreign crypto exchanges.
Currently, rules requiring user identity verification only apply to domestic trading platforms. Authorities aim to close a perceived regulatory loophole by extending restrictions to overseas exchanges.
“Accordingly, virtual assets […] are stipulated as prohibited for payment,” the FSC said.
The public consultation period will run until Feb. 13, 2024, while the amendments are expected to pass through the legislative process in the first half of 2024 if approved.
South Korea has taken a relatively strict regulatory stance on cryptocurrencies to date. In 2021, it banned financial institutions from directly handling virtual asset transactions, though banks could still provide payment services and keep cryptocurrency exchange accounts. South Korea has already taken steps to tighten its oversight of trading through amendments made in 2021.
The country requires domestic crypto exchanges to partner with
Go to Source to See Full Article
Author: Vince Dioquino
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
