South Korea proposes ban on credit card payments for cryptocurrencies
South Korea's top financial regulator has proposed changing the country's credit finance law to prevent domestic citizens from buying cryptocurrencies with credit cards.
In a legislative notice issued on January 3, the country's Financial Services Commission cited the risk of illegal withdrawals and money laundering that could arise from buying cryptocurrency in foreign currencies with South Korean citizens.
“There is a threat of illegal outflow of domestic funds due to card payment, money laundering, speculation and encouragement of speculative activities in overseas virtual asset exchange,” the FSC said.
“Accordingly, virtual assets […] They are barred from payment.”
Under current law, local crypto exchanges only allow transactions between virtual assets through deposit and withdrawal accounts where the user's identity can be verified, but these rules do not apply to foreign crypto exchanges, local outlet Yonhap reported.
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The financial services regulator is seeking public comment on the proposal until February 13, which is expected to go through a review and resolution process and be implemented within half a year.
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