South Korea's primary financial regulator has suggested amending the country's credit finance law to prohibit its citizens from using credit cards for purchasing cryptocurrencies.
In a statement issued on January 3, the Financial Services Commission (FSC) expressed concerns about potential illicit financial outflows and money laundering resulting from South Korean citizens buying cryptocurrencies via foreign exchanges. The FSC highlighted worries regarding the potential for illegal fund transfers overseas, money laundering activities, speculative trading, and the promotion of speculative behavior on international virtual asset platforms.
Consequently, the FSC aims to regulate virtual assets as prohibited forms of payment. Currently, South Korean cryptocurrency exchanges permit transactions between virtual assets using deposit and withdrawal accounts that verify user identities. However, these regulations don't extend to foreign cryptocurrency exchanges. The proposed amendment is open to public feedback until February 13, with the FSC anticipating a review, resolution, and potential implementation of the changes in the first half of 2024.
