South Korea is considering banning the purchase of cryptocurrencies using bank cards

South Korea's Financial Services Commission (FSC) is considering a ban on purchasing cryptocurrencies on foreign exchanges, citing risks of fund outflows and money laundering. Proposals for new amendments can be submitted until February 13 for the specified document.

The regulator is concerned about “illegal outflows of funds and the risks of money laundering by citizens” using bank cards to purchase digital assets on foreign exchanges.

According to a statement dated January 3, 2024, virtual assets facilitate illicit outflows and money laundering, speculation and the promotion of speculative activity. FSC classifies them as “prohibited for payment” and is going to amend the “Law on Credit Specialized Financial Activities”.

Under current legislation, local cryptocurrency exchanges only allow transactions between virtual assets through deposit accounts with the ability to verify the user's identity. However, these rules do not apply to foreign trading platforms, local media reported

The regulator invited organizations and individuals to express their views on these amendments. All proposals are accepted until February 13, and the final decision will be made in the first half of 2024, the text of the document says.

Let us remind you that on June 30, 2023, was adopted . In December, the country's authorities obliged government officials to disclose information about the cryptoassets they own.