South Korea Eyeing Ban on Credit Card Crypto Purchases

• South Korea's Financial Services Commission Proposes Cryptocurrency Credit Card Ban
• Expansion of Prohibited Credit Card Payments
• Feedback on Proposal Invited
• Strengthened Regulations for Crypto Exchanges
• Exchange Fees for Using Customer Deposits
• Further Regulation: Public Disclosure of Officials' Crypto Holdings

South Korea's Financial Services Commission Proposes Cryptocurrency Credit Card Ban

The Financial Services Commission (FSC) of South Korea is considering imposing a ban on the use of credit cards for cryptocurrency purchases. This proposal has been put forth due to concerns about the illegal outflow of domestic funds overseas.

Expansion of Prohibited Credit Card Payments

In a recent note, the FSC expressed its intentions to broaden the scope of banned credit card payments to include cryptocurrency exchanges. The regulator's primary aim is to prevent the outflow of foreign currency and curb money laundering practices.

Feedback on Proposal Invited

The FSC has extended an invitation to individuals and organizations to comment on the suggested ban by 13th February.

Strengthened Regulations for Crypto Exchanges

In the previous month, the FSC proposed new rules aimed at protecting users of cryptocurrency exchanges. These regulations mandate that exchanges must store at least 80% of their customers' deposits in cold wallets. These types of wallets are not constantly connected to the internet, thereby significantly reducing their vulnerability to cyber attacks.

Exchange Fees for Using Customer Deposits

Under the new regulations, cryptocurrency exchanges will also be obligated to charge fees to their customers for using their deposits.

Further Regulation: Public Disclosure of Officials' Crypto Holdings

In another development, South Korea is moving towards making public the cryptocurrency holdings of its officials.

Edited by Jonathan Stoker