South Korean Regulator Calls for Credit Card Crypto Transaction Ban.

January 4, 2024
1 min read

South Korea’s Financial Services Commission (FSC) is proposing a ban on credit card transactions for purchasing cryptocurrencies in an effort to combat money laundering and illegal cash outflow. The FSC is particularly concerned about the risks of speculation and money laundering associated with the unrestricted use of credit cards in cryptocurrency transactions. Existing laws in South Korea already enforce strict identity verification measures for cryptocurrency transactions on local exchanges, but foreign exchanges operate outside of these regulations, raising concerns about potential exploitation for illicit activities. The proposed ban is now undergoing a review and resolution process, with public feedback playing a crucial role in shaping the final decision. If approved, the ban is expected to be implemented in the summer of this year. South Korea has recently taken other regulatory measures to strengthen oversight, such as a disclosure mandate that made public officials’ crypto assets transparent. Additionally, failures by Terraform Labs, a South Korean cryptocurrency creator, had a negative impact on the global crypto market, leading to a crackdown by the South Korean Prosecutor’s Office. These actions reflect South Korea’s robust approach to cryptocurrency regulation.

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