Crypto users may soon be unable to trade on overseas exchanges, according to South Korea’s top financial watchdog.
The leading financial regulator in South Korea, the Financial Services Commission, has today suggested a change to the credit financing statute that would make it illegal for residents to use credit cards to buy cryptocurrency.
The regulator said that the primary objective of this new legislation is to prevent its crypto traders from purchasing crypto on international crypto exchanges. The FSC claimed in its legislative notice that growing concerns about the promotion of speculative activities, money laundering, and the illicit transfer of domestic funds were the driving forces behind the action.
Up until February 13th, the regulator will solicit comments from the general public about the proposed change. Yonhap News Agency reports that it will be evaluated and voted on with the intention of being implemented in the first half of 2024.
Users of cryptocurrency in South Korea are now obligated to utilize local exchanges for both deposit and withdrawal and to provide verification using their actual identities, as per a 2021 revision to the financial reporting legislation. In addition to forming a connection with a local bank, local trading platforms must undergo thorough licensing procedures in order to provide fiat-to-crypto services.
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