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South Korea’s Crackdown on Crypto Credit Card Transactions

Author

Jay Solano

Tags

Tags Editor's Choice

Reading time

1 min
Last update

Author

Jay Solano

Tags

Editor's Choice

Category

News

Reading time

1 min
Last update

Author

Jay Solano

Tags

Editor's Choice

Reading time

1 min
Last update


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Tightening Regulations to Curb Outflows

The Financial Services Commission (FSC) of South Korea is intensifying its regulatory stance by proposing a ban on purchasing cryptocurrencies with credit cards. This move comes amid rising concerns over the illegal outflow of domestic funds to overseas virtual asset exchanges. The FSC’s proposal extends the list of prohibited credit card transactions to include crypto exchanges. The primary objective is to mitigate risks associated with foreign currency outflows and combat potential money laundering activities.

Seeking Public Input

The FSC has opened the floor for feedback on this significant regulatory shift. It calls upon organizations and individuals to provide insights or objections to the proposed ban by February 13. This public commentary period is crucial for shaping the final decision, reflecting the regulator’s attempt to balance regulatory measures with public opinion and industry dynamics.

Ensuring Safer Crypto Transactions

The FSC’s stringent stance on crypto transactions via credit cards reflects a broader initiative to reinforce the security and integrity of the cryptocurrency market in South Korea. This proposal aligns with previous regulatory efforts, such as mandating crypto exchanges to store a significant portion of customer deposits in cold wallets and compensating users for utilizing their deposits. As the deadline for public comments approaches, the crypto community and stakeholders are poised to weigh in on these pivotal regulatory changes, which could set a precedent for crypto regulations globally.