South Korea wants to stop credit card crypto purchases.

The South Korean Financial Services Commission (FSC) has proposed a ban on cryptocurrency purchases using credit cards in an effort to curb the illegal outflow of domestic funds and strengthen prevention of money laundering. The FSC’s proposal is seeking feedback from the public until February 13th and if approved, the ban could be implemented in the first half of 2024. South Korea is known for its high crypto adoption rate, with 26% of South Korean adults holding cryptocurrencies. The country has previously mandated identification verification for users of local cryptocurrency exchanges, but these rules do not apply to overseas crypto exchanges targeting the local South Korean population. South Korea is not the first country to explore restrictions on purchasing cryptocurrencies using credit cards; Taiwan has already banned it and some banks in other countries have occasionally barred customers from purchasing cryptocurrencies with credit cards due to the associated volatility and risks.