The Financial Services Commission of South Korea has proposed a ban on using credit cards to purchase cryptocurrencies. The overall goal is to restrict crypto traders from accessing foreign exchanges.
South Korea and the new proposal to ban the purchase of crypto with credit cards
The main financial regulator of South Korea, the Financial Service Commission (FSC), has proposed today an amendment to the credit financing law. This is a proposal that involves banning the use of credit cards for purchasing crypto.
“South Korea proposes banning credit card payments for cryptocurrencies”
In practice, the FSC of South Korea seems to be concerned about the illegal outflow of national funds, money laundering, and the encouragement of speculative behaviors, to the point of deciding to do something.
Here, as a solution, comes the proposal to prohibit local citizens from purchasing crypto through credit cards.
In this way, Korean crypto traders will be limited in accessing foreign exchanges, and the government can keep a closer eye on money flows.
South Korea and the vote on the proposal against the use of credit cards to buy crypto
At the moment, it is therefore a proposal from the FSC that will have to undergo the voting process before becoming law.
And indeed, it seems that the supervisory authority has decided to gather public feedback on its proposal until February 13th.
After that date, the proposal should be reviewed and then voted on, with the aim of being implemented in the first half of 2024.
This proposal aims to highlight an amendment of 2021 to the South Korean financial reporting law, which states that crypto users must operate using deposit and withdrawal accounts on local exchanges.
At the same time, local trading platforms must also undertake rigorous preparations for licensing, to provide fiat to crypto services, including ensuring a partnership with a local bank.
Meeting with the President of the SEC of the USA
Last month news leaked that Lee Bok-hyeon, governor of the Financial Supervisory Service (FSS) of South Korea, will participate in a historic meeting with the President of the Securities and Exchange Commission of the USA, Gary Gensler.
This meeting is expected to take place in this first month of the year 2024, and aims to address the emerging challenges of the crypto landscape.
Specifically, it seems that the goal will be to synchronize specific programs and agendas to strengthen cooperation between the two regulatory bodies.
That’s why it is expected that discussions will focus on the regulatory evolution of cryptocurrencies, emphasizing the critical role that the two bodies will have to play in protecting consumers, providing a safe environment for all crypto investors.