South Korea is considering a major move to restrict its citizens from purchasing cryptocurrencies using credit cards, according to a proposal made by the country's Financial Services Commission (FSC).
Financial Services Commission Proposes Change to Restrict Credit Card Payments for Crypto
The proposed amendment to the credit financing law aims to restrict crypto trading activities and, in particular, to prevent users from purchasing digital assets on foreign crypto exchanges using credit cards.
The primary motivation behind the proposed change is to address concerns about illegal capital outflows, money laundering, and encouraging speculative behavior among crypto investors.
The FSC emphasized the need to regulate credit card payments for cryptocurrency transactions to effectively mitigate these risks.
In its regulatory notice, the regulator highlighted that concerns had been raised regarding the potential misuse of credit cards to fund crypto investments on international platforms.
By limiting credit card transactions, South Korea aims to strengthen oversight and ensure cryptocurrency trading complies with regulatory standards.
The proposed change will be open for public feedback until February 13, allowing stakeholders and the general public to contribute their perspectives on the potential legislative change.
The FSC plans to review and vote on the proposed amendment with the aim of implementing the measure in the first half of 2024, Yonhap News Agency reported.
*This is not investment advice.