Key Points:
- The South Korean Financial Services Commission (FSC) has proposed a ban on using credit cards for purchasing cryptocurrencies on foreign exchanges.
- The FSC aims to address concerns about illegal outflows of domestic funds, money laundering, and speculative behavior in cryptocurrency trading.
The South Korean Financial Services Commission (FSC) has announced a proposal to ban the use of credit cards for purchasing cryptocurrencies on foreign exchanges. The proposal is part of an amendment to the Enforcement Decree of the Credit-Specialized Financial Business Act. The FSC cites concerns over illegal outflows of domestic funds, money laundering, and speculative behavior in cryptocurrency trading as the reasons behind the proposed ban.
The proposed amendment includes a public feedback period that will extend until February 13, allowing individuals and organizations to provide input and comments on the proposal. Following this period, the amendment is expected to undergo review and be voted on, with a goal of implementing the new rules in the first half of 2024.
In addition to the proposed ban on credit card purchases, a recent investigation by the Anti-Corruption and Civil Rights Commission in South Korea uncovered substantial cryptocurrency trading activities among the country’s lawmakers. Over the past three years, the lawmakers collectively traded virtual assets worth approximately $97.6 million. The investigation identified 18 lawmakers who owned virtual assets, with 11 engaging in active trading. Bitcoin was the most popular cryptocurrency traded, and the lawmakers had a diverse portfolio of 107 different types of virtual assets.
The proposed ban on credit card purchases is aimed at addressing concerns over illegal outflows of domestic funds, money laundering, and speculative behavior in cryptocurrency trading. The ban would restrict the use of credit cards for purchasing cryptocurrencies on foreign exchanges. The FSC has provided a public feedback period for individuals and organizations to provide input and comments on the proposed amendment. The amendment is expected to undergo review and be voted on, with a goal of implementing the new rules in the first half of 2024.
