Restricting credit card use aims to curb illicit financial outflows and speculation, as well as solicit public input.
financial committee (Financial Supervisory Service) The South Korean government has proposed significant changes to the Credit Finance Act, which aims to restrict the use of credit cards in cryptocurrency transactions. These strategic measures aim to prevent local residents from purchasing cryptocurrencies on foreign exchanges in order to curb illicit financial outflows, money laundering and speculative practices.
Addressing concerns: Korea FSC’s plans
The amendment specifically targets illegal outflow of domestic funds through card payments on virtual asset exchanges. The Financial Services Commission recognizes concerns about money laundering and speculative activities and is expanding restrictions on credit card payments in line with international standards and seeking to strengthen anti-money laundering. (AML) measurement.
Public input and anticipated timelines are sought.
The Financial Supervisory Commission is recruiting public opinions on the amendment until February 13, 2024, and is encouraging citizens, groups, and organizations to share their opinions through the Participatory Legislation Center. The regulatory agency plans to review the amendments by thoroughly considering various perspectives and implement them in the first half of 2024.
Recent Developments and Clarity in Cryptocurrency Taxation
Separately, the National Tax Service announced its position on virtual assets. Individuals who hold virtual assets through non-custodial, decentralized wallets include: cold wallet, It is not subject to overseas financial account reporting. This announcement provides much-needed clarity to those involved with decentralized cryptocurrency wallets in the country’s evolving cryptocurrency landscape.
The FSC’s move signals a proactive stance to regulate the cryptocurrency market while seeking public involvement with the intention of curbing illicit financial activity and creating a safer investment environment.
Disclosure: The opinions expressed in this article are for information purposes only and do not constitute financial advice.