South Korea’s Financial Services Commission (FSC) wants to change its credit finance act, aiming to stop people in South Korea from buying cryptocurrencies using credit cards. They’re worried that this move will help prevent local crypto traders from using foreign exchanges. The FSC is mainly concerned about money leaving the country illegally, money laundering, and people making risky bets.
They’re asking the public for thoughts on this change until February 13. If all goes according to plan, they’ll talk it over and vote on it in the first part of 2024.
A rule from 2021 already says that South Korean folks trading crypto need to use bank accounts linked to their real names on local exchanges. Plus, these exchanges have to get special licenses to offer services converting regular money to crypto. That includes teaming up with a local bank.
This latest idea from the FSC to block credit card buys of crypto is part of their larger plan to watch over the crypto world and keep investors safe. Just last December, they suggested rules to make sure crypto exchanges stash away 80% of their customers’ money in extra-secure wallets and even pay fees to customers for using their deposits.
