The head financial regulator in South Korea is proposing a new amendment to the credit financing regulations that would make it illegal for residents to use credit cards to purchase cryptocurrencies. The Financial Services Commission (FSC) is concerned about potential money laundering and illicit outflows associated with South Korean nationals buying crypto from foreign exchanges. The proposed amendment aims to restrict domestic cryptocurrency traders from using international exchanges.
Currently, foreign cryptocurrency exchanges are exempt from the legal restrictions that govern local exchanges in South Korea. The existing laws only allow transactions involving virtual assets through deposit and withdrawal accounts where the user’s identity can be verified. The FSC is accepting public comments on the proposal until February 13, with the goal of implementing it in the first half of 2024 after a review and resolution procedure.
In South Korea, cryptocurrency users are required to trade using withdrawal and deposit accounts on local exchanges, which must be validated with their real names. Local trading platforms that offer fiat-to-crypto services also need to meet stringent licensing requirements, including partnering with a local bank.
Recent data from the country’s Anti-Corruption and Civil Rights Commission reveals that members of the South Korean parliament have engaged in cryptocurrency transactions worth approximately $100 million over the past three years. It is estimated that lawmakers’ accounts will see transactions worth 125.6 billion won (US$97.6 million) in cryptocurrencies.
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| Information | Details |
|---|---|
| Geography | Asia |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | National Assembly, Anti-Corruption and Civil Rights Commission, Financial Services Commission |
| Currencies | None |
| Securities | None |
