South Korea will seek to block crypto purchases with cards
South Korea’s Financial Services Commission (FSC) raised changes to the country’s credit financing laws
In a recent legislative proposal, South Korea’s Financial Services Commission (FSC) proposed changes to the country’s credit financing laws, with the aim of prohibiting local citizens from purchasing cryptocurrencies through credit cards.
The FSC expressed concern about possible illegal flows and money laundering activities that could arise if South Korean citizens conducted cryptocurrency transactions on foreign exchanges.
“There have been concerns about the illegal outflow of domestic funds abroad due to card payments on virtual asset exchanges abroad, money laundering, speculation and the encouragement of speculative activities,” the FSC said in a legislative communication dated January 3.
Currently, local laws allow cryptocurrency transactions only through deposit and withdrawal accounts on local exchanges, where the identity of the user can be verified. However, these regulations do not apply to foreign cryptoexchanges, according to local media Yonhap.
The financial regulator is seeking public opinion on this proposal, and the feedback period will run until 13 February. The proposal is expected to go through a review and resolution process, with the goal of coming into force in the first half of 2024.
K. Tovar
Source: Cointelegraph
(Reference image source: Traxer, Unsplash)
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