South Korea Tightens Rules on Cryptocurrency Transactions with Credit Cards
South Korea's FSC plans to limit credit card use for crypto purchases, targeting foreign transactions to curb illegal outflows and speculation.
It has recently been reported that South Korea's Financial Services Commission (FSC) is planning to limit South Koreans' use of credit cards for buying cryptocurrencies, especially on foreign exchanges. They aim to prevent illegal money outflow and reduce speculative trading with this move.
The proposed change is aimed at stopping the use of credit cards to send money abroad through crypto exchanges. The FSC's goal is to control money laundering and speculative behaviors.
The FSC is open to public feedback on this proposal until February 13, 2024. According to their plans, this change will be implemented in the first half of 2024. Citizens and organizations will be able to share their views online, this is to help them ensure that a wide range of opinions is considered.
In a related development, South Korea's National Tax Service cleared the air about decentralized crypto wallet holders, saying that these crypto wallet holders, including those using cold wallets, won't need to report them as overseas financial accounts.
