South Korean Watchdo...

South Korean Watchdog Seeks to Forbid Buying Crypto with Credit Cards

By BeInCrypto January 04, 2024 In Korea

The Financial Services Commission (FSC) of South Korea has highlighted concerns regarding the illicit promotion of gambling via credit card transactions on foreign cryptocurrency exchanges.

“Therefore, virtual assets are stipulated as subjects of payment prohibition according to Article 2. Item 1 of the “Act on the Protection of Users of Virtual Assets,” the statement declares.

South Korean Regulator Cracks Down on Crypto Use

According to a recent statement, the regulator is increasingly concerned about South Korean citizens using credit cards to purchase cryptocurrency, potentially facilitating money laundering or engaging in illegal gambling. It is important to note that gambling is prohibited in South Korea.

Meanwhile, this comes amid BeInCrypto recently reporting that South Korea’s crypto surge has seen an unprecedented $100B in virtual assets dominate overseas accounts, reflecting a significant shift in the country’s financial sector.

However, according to the National Tax Service (NTS), virtual assets represented over two-thirds of the value in registered overseas accounts this year, with 5,419 residents and companies reporting ownership of assets through these accounts.

South Korea’s FSC Tightens Grip on Employee Crypto Use

Meanwhile, the FSC in South Korea now requires its internal employees to execute crypto reporting for their holdings. The move comes as a second phase of legislation.

However, the FSC sent an administrative notice to internal employees. This directed them to report their crypto holdings as defined under the Specific Financial Information Act.

The employees this applies to are those currently performing duties related to crypto. Furthermore, employees who have performed the duties within the last six months.

An official from the FSC added that the agency planned to complete the revision in the second half of 2023 after an administrative notice. However, no updates have been provided as yet.

Among the details that will be necessary in the form are the type of crypto assets held. Additionally, date of acquisition, quantity, and amount.

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