South Korea’s financial regulator, the Financial Services Commission (FSC), has proposed a ban on using credit cards to purchase cryptocurrency. The FSC cited concerns over illegal capital outflows and anti-money laundering risks as the reasons behind the proposed ban. If implemented, this rule would prevent consumers from using credit cards to buy digital assets from both domestic and foreign crypto exchanges. Currently, user identity verification requirements only apply to domestic trading platforms, but the FSC aims to close this regulatory loophole by extending restrictions to overseas exchanges. The public consultation period for this proposal will run until February 13, 2024, and if approved, the amendments are expected to pass through the legislative process in the first half of 2024. South Korea has already taken a strict regulatory stance on cryptocurrencies, banning financial institutions from directly handling virtual asset transactions in 2021. However, banks can still provide payment services and maintain cryptocurrency exchange accounts. The country has also tightened oversight of trading through amendments made in 2021, requiring domestic crypto exchanges to partner with local banks and verify user identities. These rules have made it more challenging for South Koreans to trade virtual assets anonymously on domestic exchanges, leading to a consolidation of activity towards major South Korean crypto platforms.

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Geography	Asia
Countries
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Companies	CCData, Financial Services Commission
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