South Korea Financial Services Commission (FSC) cryptocurrency The unit made a strategic move regarding its operations. He announced a proposed amendment to the Credit Financing Act to curb potential misuse of funds and speculative activities. In this context, he signaled that there would be a significant restriction on the use of credit cards for cryptocurrency transactions.
Meanwhile, the regulator’s primary goal is to prevent local citizens from purchasing cryptocurrencies on foreign exchanges, citing fears of illegal outflow of funds, money laundering and encouragement of speculative behavior.
FSC’s Crypto Buying Restrictions
The proposed change highlighted in the announcement targets the illegal outflow of domestic funds abroad, especially through card payments in virtual asset exchanges. Koinfinans.com As we reported, the FSC’s recognition of concerns about money laundering and speculative activity led to the decision to expand the scope of banned credit card payments.
Meanwhile, the FSC invites public comments on the proposed change until February 13, 2024, and implementation is expected in the first half of the same year.
Public Feedback and Implementation Timeline
South Korean citizens, organizations, or legal entities with comments regarding the amendment have the opportunity to submit their feedback online through the Participatory Legislation Center. In other words, FSC encourages stakeholders to contribute their perspectives, ensuring comprehensive consideration of different perspectives.
Meanwhile, the country crypto- In another new development in the landscape, South Korea’s National Tax Service has clarified its stance on virtual assets, providing much-needed clarity for decentralized crypto wallet holders. Notably, the National Tax Service announced that individuals holding virtual assets through non-custodial, decentralized wallets, including cold wallets, will not be subject to offshore financial account reporting.