South Korea's Financial Services Commission (FSC) has proposed a significant change in the country's credit finance laws, aiming to ban the use of credit cards for purchasing cryptocurrencies. This legislative move, detailed in a notice on January 3, arises from concerns over illegal fund outflows, money laundering, and speculative activities linked to cryptocurrency purchases from foreign exchanges.
Targeting Cross-Border Cryptocurrency Transactions: The FSC highlighted the risks associated with card payments on overseas virtual asset exchanges, which currently lack stringent identity verification processes. Unlike local exchanges, foreign platforms don't adhere to the same regulatory framework, posing a risk for illegal activities.
Public Input and Implementation Timeline: The regulator is now soliciting public feedback on this proposal until February 13. Following this period, the proposal will undergo a review and resolution process, with the aim of implementing these changes in the first half of the year.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.