The Financial Services Commission (FSC) of South Korea Expresses Concerns About Credit Card Transactions on Foreign Crypto Exchanges
The Financial Services Commission (FSC) of South Korea has raised concerns about the illicit promotion of gambling through credit card transactions on foreign cryptocurrency exchanges. This is in line with the “Act on the Protection of Users of Virtual Assets,” which prohibits the use of virtual assets for payments. The FSC is particularly worried about South Korean citizens using credit cards to buy cryptocurrencies, as it could facilitate money laundering and illegal gambling activities, both of which are prohibited in the country.
South Korean Regulator Cracks Down on Crypto Use
In a recent statement, the FSC highlighted its increasing concern about South Korean citizens using credit cards to purchase cryptocurrency. This practice could potentially lead to money laundering or involvement in illegal gambling activities. It’s worth noting that gambling is strictly prohibited in South Korea. BeInCrypto previously reported that South Korea has witnessed a significant surge in crypto activity, with over $100 billion worth of virtual assets dominating overseas accounts. This trend signifies a major shift in the country’s financial sector.
South Korea’s FSC Tightens Grip on Employee Crypto Use
Furthermore, the FSC has implemented new regulations requiring its internal employees to report their crypto holdings. This move comes as part of the second phase of legislation. An administrative notice was sent to employees involved in crypto-related duties, instructing them to report their crypto holdings according to the Specific Financial Information Act. This reporting requirement applies to current employees and those who have performed crypto-related duties within the last six months. The FSC aims to complete the revision by the second half of 2023.
Hot Take: South Korea Takes Strong Measures Against Illicit Crypto Activities
The Financial Services Commission (FSC) of South Korea is cracking down on the use of cryptocurrencies, particularly concerning credit card transactions on foreign exchanges. The FSC is concerned about potential money laundering and illegal gambling activities facilitated by these transactions. Additionally, the FSC has tightened its grip on employee crypto use, requiring internal employees to report their crypto holdings. These measures reflect South Korea’s commitment to combat illicit activities in the crypto space and ensure compliance with financial regulations. As the country’s crypto sector continues to grow, regulatory bodies are taking proactive steps to maintain a secure and transparent environment.
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