The Crackdown on Cryptocurrency Credit Card Transactions Intensifies in South Korea

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Last Updated on January 6, 2024 by Bitfinsider

The South Korean Financial Services Commission (FSC) is stepping up its regulation efforts with a proposal to outlaw using credit cards to buy cryptocurrency. This action is being taken in response to growing worries about the illicit transfer of domestic money to foreign exchanges for virtual assets.

With its recommendation, the FSC adds cryptocurrency exchanges to the list of transactions that are prohibited with credit cards. The principal aim is to alleviate the hazards linked to the withdrawal of foreign cash and counteract any possible instances of money laundering.

Comments on this important regulation change are now being accepted, according to the FSC. It requests comments or objections to the proposed prohibition from groups and individuals by February 13. In order to reflect the regulator’s attempt to strike a balance between regulatory measures, public opinion, and industry dynamics, the public comment period will play a critical role in influencing the ultimate decision.

The FSC’s strict policies regarding credit card transactions using cryptocurrencies are part of a larger effort to bolster the integrity and security of South Korea’s cryptocurrency ecosystem. This plan is in line with earlier regulatory initiatives, such requiring cryptocurrency exchanges to hold a sizeable percentage of user deposits in cold wallets and paying consumers for using their deposits.

The crypto community and other interested parties are ready to comment on these important regulatory amendments as the time for public comments draws near. These reforms have the potential to establish a precedent for crypto policies around the world.

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