Table of Contents
In a significant regulatory move, the South Korea FSC has introduced a proposal to amend the Enforcement Decree of the Credit-Specialized Financial Business Act. This proposal’s primary objective is to prohibit the use of credit cards for cryptocurrency purchases.
The amendment specifically targets the limitation of credit card usage for acquiring cryptocurrencies on foreign exchanges.
The FSC’s rationale behind this proposal stems from concerns over potential illegal outflows of domestic funds, the heightened risk of money laundering, and the encouragement of speculative behavior in cryptocurrency trading.
South Korea FSC Crypto Credit Card Ban Proposal: Addressing Concerns and Seeking International Cooperation
In its proposal, the Financial Services Commission (FSC) directly addresses concerns, stating, “Concerns have been raised about the illegal outflow of domestic funds overseas due to card payments on overseas virtual asset exchanges, money laundering, speculation, and encouragement of speculative activities.”
Additionally, the FSC expects that the proposed ban will “establish a basis for cooperation with international brands” and bolster measures to prevent foreign currency outflow and money laundering.
To enhance transparency and encourage public participation, the proposal incorporates a public feedback period running until Feb. 13.
During this time, individuals and organizations can provide input and comments. Following this feedback phase, the amendment is scheduled for review and voting, to implement the new rules in the first half of 2024.
South Korea FSC- Cryptocurrency Trading Among South Korean Lawmakers Uncovered
A recent investigation by the Anti-Corruption and Civil Rights Commission in South Korea has exposed substantial cryptocurrency trading activities among the country’s lawmakers.
Over the past three years, these lawmakers collectively participated in virtual asset transactions amounting to approximately 125.6 billion won ($97.6 million).
The revelations surfaced from a 90-day inspection of transaction records encompassing all 298 sitting lawmakers, spanning from May 30, 2020, to May 31, 2023.
The commission’s report pinpointed 18 lawmakers as virtual asset owners, with 11 actively engaging in trading. The combined buying and selling transactions of these lawmakers totaled 62.5 billion won ($48.4 million) and 63.1 billion won ($48.8 million), respectively.
Within the array of cryptocurrencies traded by South Korean lawmakers, Bitcoin emerged as the most popular choice, according to the commission’s report.
The investigation also shed light on a diverse portfolio of virtual assets, encompassing 107 different types.
However, a notable revelation surfaced as one lawmaker was identified conducting 49 crypto transactions without reporting them.
The lawmaker cited a closed exchange account as the reason behind the unreported transactions, adding a layer of scrutiny to the overall findings.
For any queries and suggestions contact us here.
