South Korea Targets Crypto Purchase Ban for Credit Cards

South Korea’s top financial regulator looks to address how local citizens buy cryptocurrencies.

South Korean police officers posing infront of burning credit cards.
Created by Gabor Kovacs from DailyCoin
  • South Korea is ramping up its crypto regulation.
  • The South Korean SEC is focusing on regulating how its citizens purchase crypto. 
  • Over the next few months, citizens, lawmakers, and regulators will determine if the proposal passes. 

South Korea has joined global efforts in regulating the crypto sector as the industry exponentially grows its user numbers. As part of its aspiration to emerge as a global hub for digital assets, the country has introduced a series of crypto-forward legislation throughout 2023. Its latest proposal now looks to address how its citizens buy cryptocurrencies.

South Korea Bans Crypto Purchases 

South Korea’s Financial Services Commission, equivalent to the US SEC, has proposed an amendment to its Credit Finance Act. To curb the “illegal outflow of domestic funds overseas,” the regulator looks to effectively ban South Korean citizens from buying crypto using credit cards. 

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The South Korean SEC argued in its legislative notice that it aims to restrict crypto traders from buying assets on foreign crypto exchanges, especially amid mounting concerns about money laundering and promoting speculative behavior. 

Although the amendment is pending approval, it is anticipated to undergo review and a voting process, with plans for implementation in the first half of 2024. South Korean citizens have until February 13 to provide feedback on the proposal. 

On the Flipside

Why This Matters

South Korea is intensifying its commitment to protecting its citizens while ensuring crypto innovation does not halt. As digital assets increasingly attract illicit activities, it becomes crucial for the financial regulator to establish robust frameworks and strategies that not only safeguard investors but also foster industry growth.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.