South Korea Proposes Ban on Credit Card Crypto Purchases amid Money Laundering Concerns
Summary:
South Korea's Financial Services Commission (FSC) is proposing changes to the nation's credit finance regulations to prevent locals from purchasing cryptocurrency with credit cards. The move is a response to concerns over potential illegal money flows and money laundering from investments in cryptocurrency on international exchanges. The proposal, which seeks public opinion until February 13, is expected to be resolved and implemented in the first half of the year.
The leading financial governing body in South Korea is considering amendments to the nation's credit finance regulations to bar locals from purchasing cryptocurrency using credit cards. The Financial Services Commission of South Korea voiced this proposition in a legislative notice dated January 3, attributing it to risks related to illicit money flow and potential money laundering associated with South Koreans investing in cryptocurrency via international exchanges. The commission expressed concerns about the outgoing transfer of local funds due to credit card usage on offshore virtual asset marketplaces, money laundering, and fueling speculative activities. Hence the decision to stipulate virtual assets as a banned form of payment. Currently, domestic cryptocurrency exchange platforms allow virtual asset transactions only via accounts that corroborate the user's identity. However, these guidelines don't extend to foreign crypto exchanges, as reported by Yonhap. The financial regulator is presently soliciting public responses on this new proposition, with the feedback duration set until February 13. The proposal is anticipated to undergo a thorough examination and resolution phase, with an aim to instate it during the first half of the present year.
Published At
1/4/2024 7:14:35 AM
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