South Korea to Limit Use of Credit Cards to Buy Crypto by Local Users

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The Financial Services Commission (FSC) of South Korea is proposing a revision to the country’s credit finance laws that would prevent citizens from using credit cards to purchase cryptocurrency.

The FSC cites concerns about potential illegal activities such as money laundering and unauthorized flow of funds to foreign cryptocurrency exchanges.

According to the FSC, this measure is necessary to prevent the encouragement of speculative activities and to comply with laws that prohibit certain types of payments for virtual assets.

Currently, local cryptocurrency exchanges only allow transactions between virtual assets through verified deposit and withdrawal accounts, but this restriction does not apply to foreign crypto exchanges, the FSC notes.