South Korea Seeks to Ban Credit Card Payments for Crypto

TL;DR

• South Korea’s FSC wants to ban credit card payments for cryptocurrencies.

• The regulator intends to limit crypto users from trading on foreign exchanges.

South Korea Could Crack Down on Credit Card Payments for Crypto

South Korea’s Financial Services Commission (FSC), the country’s top financial regulator, is seeking to ban the purchase of cryptocurrencies using credit cards. This comes as the regulator proposed an amendment to its credit finance act on Wednesday.

According to Yonhap News Agency, the move is designed to stop local citizens from buying cryptocurrencies using credit cards. The regulator is seeking to limit South Korean crypto traders from buying crypto on foreign crypto exchanges, 

According to the FSC, there are concerns over the illegal outflow of domestic funds, money laundering and rising speculative behavior of traders in the country. The FSC is now seeking public feedback on the amendment proposal until February 13.

The amendment is expected to be reviewed and voted on and possibly implemented within the first half of 2024.

South Korea has strict rules regarding its cryptocurrency market. Crypto users in the country are required to trade using withdrawal and deposit accounts on local exchanges, verified with their real names. 

Furthermore, local crypto trading platforms must carry out licensing before they can provide fiat-to-crypto services.