South Korea’s Financial Services Commission (FSC), has introduced a proposal to modify the Credit Finance Act. This proposal seeks to prevent residents from using credit cards to buy cryptocurrencies.
The driving force behind this amendment is to restrict local investors from acquiring cryptocurrencies through overseas digital currency platforms, the FSC elaborated.
“Concerns have been raised about illegal outflow of domestic funds overseas due to card payments on overseas virtual asset exchanges, money laundering, speculation, and encouragement of speculative activities,” said the FSC.
The regulatory body highlighted concerns such as the illicit outflow of domestic capital, potential money laundering activities, and the fostering of speculative trading behaviors as pivotal reasons for this regulatory move.
The FSC intends to solicit public opinions on this amendment until February 13. The proposal is anticipated to undergo scrutiny and a voting process, aiming for enactment in the first half of 2024, as reported by the Yonhap News Agency.
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