The Financial Services Commission (FSC) in South Korea has proposed a ban on citizens purchasing cryptocurrencies using credit cards. The FSC aims to limit crypto trading on foreign exchanges and address concerns over illegal outflows of domestic funds, money laundering, speculation, and encouraging speculative activities. The proposed amendment seeks to restrict local crypto traders from buying cryptocurrencies on foreign exchanges by prohibiting crypto purchases with credit cards.
Currently, South Korea applies stricter regulations on local crypto exchanges compared to foreign exchanges. Local exchanges require authentication of user identities for transactions, while foreign exchanges do not have the same requirements. Local trading platforms also need to undergo licensing preparations and secure partnerships with local banks to provide fiat-to-crypto services.
The FSC plans to collect public feedback on the proposed amendment until February 13, 2024, and expects to implement the changes in the first half of 2024. In an effort to improve transparency and accounting clarity, the FSC has also introduced draft rules that mandate virtual-asset companies to disclose their cryptocurrency holdings in financial statements from 2024. Additionally, high-ranking public officials in South Korea are now required to disclose their crypto holdings to enhance transparency in public service.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Financial Services Commission (FSC), Yonhap, Ministry of Personnel Management, Public Ethics and Transparency Initiative |
| Currencies | None |
| Securities | None |
