South Korea’s Financial Services Commission (FSC) proposed changing its credit finance act, banning local citizens from buying crypto using credit cards.
South Korea’s financial watchdog has proposed banning citizens from purchasing cryptocurrencies using credit cards. The FSC has said that it wants to limit the ability of crypto users to trade on foreign exchanges.
Concerns about illegal outflow of domestic funds
In a legislative notice, the FSC explained it seeks a partial amendment to its “Enforcement Decree of the Credit-Specialized Financial Business Act” to limit local crypto traders from buying cryptocurrencies on foreign exchanges. The FSC hopes that by banning credit card purchases of crypto, it will address many concerns.
“Concerns have been raised about illegal outflow of domestic funds overseas due to card payments on overseas virtual asset exchanges, money laundering, speculation, and encouragement of speculative activities,” said the FSC.
Adding that “…virtual assets are stipulated as prohibited for payment.”
Different rules for domestic and foreign exchanges
South Korea’s existing laws impose stricter regulations to local crypto exchanges. According to local…