On January 4, 2024, South Korea's Financial Services Commission (FSC) announced its plans to ban the purchase of crypto assets using credit cards. This step was taken as part of proposed changes to the credit financing law, with the main aim of controlling crypto purchases by traders on foreign exchanges.
Avoid Illegal Fund Flows and Excessive Speculation
The FSC expressed concern over possible illegal fund flows and excessive speculation in crypto trading. They plan to solicit public opinion on these changes until February 13, 2024, with the hope of implementing them in the first half of the year.
Transparency Efforts by High-ranking Korean Public Officials
Previously, in 2021, South Korea required crypto users to trade on local exchanges that had been verified with real names. Local exchanges are also required to have strict licensing for fiat-to-crypto money exchange services, including collaboration with local banks.
This step continues with the government's plan to ask high-ranking public officials to disclose their crypto asset holdings starting next year. This is part of the Public Ethics and Transparency Initiative, which aims to increase transparency in the public sector.
South Korea is Seriously Working on Regulations for the Crypto Market
The FSC, along with the Central Bank of South Korea, is also authorized to supervise crypto operators and custodians. They recently proposed new rules requiring Virtual Asset Service Providers (VASPs) to keep customer money in separate banks, to avoid unauthorized use of customer funds.
This plan, which will be discussed further in a meeting between the South Korean FSS Governor and the US SEC Chair, shows South Korea's serious steps in regulating the crypto market.
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DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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