South Korea Aims to Prohibit Credit Card Transactions for Cryptocurrency Acquisitions

The Financial Services Commission (FSC) of South Korea intends to prohibit citizens from utilizing credit cards for purchasing digital assets on international cryptocurrency exchanges. Amendments to the local credit finance act will be implemented accordingly.

The leading financial regulator in South Korea has proposed changes to the credit finance act. The FSC recommends that local residents be barred from employing credit facilities and anonymous accounts for acquiring cryptocurrencies.

The objective of the FSC’s initiative is to diminish the incidence of illicit transactions and money laundering risks while curbing the outflow of domestic capital. As per the suggested amendments, digital assets will be classified as “prohibited for payment,” meaning South Korean citizens will not be permitted to use credit card funds for their purchase.

Local media indicates that the existing version of the credit finance act permits South Korean citizens to engage in transactions on domestic crypto exchanges solely through debit accounts that verify the owner’s identity. However, this regulation does not currently extend to dealings with foreign crypto platforms.

The proposed amendments to the legislation are expected to be officially presented in the first half of this year. The legislative initiative is currently undergoing public discussion, which will continue until February 13.

The regulatory framework for the cryptocurrency market in South Korea is anticipated to take effect in 2024. The development of the pertinent bill has been in progress for approximately a year and a half.

Сообщение South Korea Plans to Ban Crypto Purchases Using Credit Cards появились сначала на CoinsPaid Media.