South Korean Watchdog aims to ban credit card purchases of crypto.

January 4, 2024
1 min read

The Financial Services Commission (FSC) of South Korea has expressed concerns about South Korean citizens using credit cards to purchase cryptocurrency, potentially facilitating money laundering or illegal gambling. The FSC has warned against illegal outflows and gambling via credit cards on overseas cryptocurrency exchanges. This strict stance from the FSC comes after South Korea experienced a $100 billion surge in cryptocurrency, with 5,419 entities under scrutiny from the National Tax Service (NTS).

The FSC has implemented internal crypto reporting, requiring its employees to report their crypto holdings as defined under the Specific Financial Information Act. The details that will be necessary in the reporting form include the type of crypto assets held, date of acquisition, quantity, and amount.

This crackdown on credit card purchases of cryptocurrency is part of the FSC’s efforts to regulate the cryptocurrency market and prevent illicit activities. The FSC is particularly concerned about money laundering and illegal gambling, as gambling is prohibited in South Korea. By forbidding credit card transactions for cryptocurrency purchases, the FSC hopes to curb these activities and protect the financial security of its citizens.

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