South Korea Regulator Seeks Ban on Crypto Purchases With Credit Cards

The Financial Services Commission cited concerns "about illegal outflow of domestic funds overseas due to card payments on overseas virtual asset exchanges."

AccessTimeIconJan 4, 2024 at 4:54 p.m. UTC
Updated Mar 8, 2024 at 7:23 p.m. UTC
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South Korea's Financial Services Commission (FSC) has proposed a ban on using credit cards to purchase cryptocurrency, citing concerns "illegal outflow of domestic funds overseas."

The regulator wants to expand the scope of prohibited credit card payments to add crypto exchanges to prevent foreign currency outflow and prevent money laundering, it said in a note on Thursday.

The FSC has invited comment on the proposal from organizations and individuals by Feb. 13.

Last month, the FSC proposed rules to protect users of crypto exchanges, requiring the exchanges to store at least 80% of their customers' deposits in cold wallets – crypto wallets not permanently online and thus less vulnerable to hacks. Under the rules, exchanges would also have to pay fees to customers for using their deposits.

Edited by Sheldon Reback.


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Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.

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