South Korea Plans to Ban Crypto Purchases with Credit Cards
The Financial Services Commission (FSC) of South Korea has put forward a proposal to amend the Enforcement Decree of the Credit-Specialized Financial Business Act, with the aim of prohibiting the use of credit cards for purchasing cryptocurrencies. The proposed amendment specifically targets transactions on foreign exchanges and is driven by concerns over illegal fund outflows, money laundering, and speculative behavior in crypto trading.
FSC Expresses Concerns about Overseas Crypto Trading Risks
The FSC has highlighted concerns regarding the use of card payments on overseas virtual asset exchanges, which include the illegal outflow of domestic funds, money laundering, speculation, and encouragement of speculative activities. It expects that the proposed ban will strengthen measures against foreign currency outflow and money laundering while fostering cooperation with international brands.
Public Feedback Period and Implementation Timeline
The proposal is open for public feedback until February 13, allowing individuals and organizations to provide input and comments. After this period, the amendment will undergo review and voting, with plans to implement the new rules in the first half of 2024.
Anti-Corruption Probe Reveals Crypto Trading Among South Korean Officials
An investigation conducted by the Anti-Corruption and Civil Rights Commission in South Korea has uncovered significant cryptocurrency trading activities among lawmakers. Over the past three years, these officials collectively traded virtual assets worth approximately $97.6 million. The investigation identified 18 lawmakers who owned virtual assets, with 11 actively participating in trading. Bitcoin was found to be the most popular cryptocurrency among them.
Hot Take: South Korea Takes Steps to Regulate Crypto Purchases
The proposal by South Korea’s Financial Services Commission to ban crypto purchases with credit cards is a significant move to regulate the cryptocurrency market. By addressing concerns over illegal fund outflows, money laundering, and speculative behavior, the FSC aims to protect investors and strengthen measures against financial crimes. This development reflects the growing focus on crypto regulations worldwide as governments strive to strike a balance between innovation and investor protection in this rapidly evolving industry.
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