Use of Credit- Cards for Crypto Buying Banned in South Korea

The South Korean Financial Service Commission (FSC) has made a mandatory amendment to the usage of credit cards. The commission’s new rule orders citizens not to buy cryptocurrencies using their credit cards.

The step taken to ban the usage of credit cards for crypto purchases is to avoid severe issues like money laundering and potential illegal cash outflow. The amendment shows FSC’s concern over financial crimes associated with crypto purchased for foreign exchanges.

Limiting credit card usage was mandatory to avoid theft and other illegal activities affecting the global crypto market severely. The locals in South Korea using regional exchanges for trade are supposed to go through desired verification on selling and buying tokens/ coins.

As per a South Korean analyst, the FSC move is entirely based on their intention to safeguard the region’s residents from becoming victims of hackers and fraudsters. Ongoing crypto regulations are pretty harsh for the local exchanges.

Yonhap reported that the proposed bill seeks public feedback until February 13, 2024. Following the process, it will be reviewed, amended, and then implemented. 

The Ministry of Personnel Management of South Korea announced that high-ranking public officials will have to disclose their overall crypto holdings in the desired time decided by the ministry.

Role of South Korea and its Trader in the Global Crypto Market

Many reports praise the efforts of South Korean crypto traders who are globally known for their trading skills.

Investors from South Korea have shown a strong interest in investing in digital assets and cryptocurrency marketplaces. Data from a study conducted in 2021 showed that 40.4% of the 1,885 workers surveyed said they had made Bitcoin investments.

The National Assembly of South Korea enacted new laws in March 2020, opening the door for regulating and legalizing the presence of cryptocurrencies and cryptocurrency exchanges.

Surprisingly, 49.8% of South Korean workers aged 30 to 39 stated they have invested in cryptocurrency. Workers in their twenties came in second, accounting for around 37.1%.

However, following the 2017 Bitcoin crash, cryptocurrencies emerged as a feasible path to financial stability in 2018 for young South Koreans living in a hierarchical culture with high living costs and a fiercely competitive labor market. 

South Korean traders are notorious for fueling speculative frenzy in lesser coins. 

When writing, Bitcoin was trading at $43,379 with a trading volume of $41,889,203,726 and its trading volume grew over 25% intraday. 

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.