South Korea to ban credit card purchases of digital assets

South Korea is considering a ban on credit card purchases of digital assets, according to the country’s financial services regulator. The proposed amendment aims to prevent illegal outflows of domestic funds overseas, money laundering, speculation, and other speculative activities. The regulator is urging international brands to collaborate in curbing this practice. In South Korea, investors are required to trade on local exchanges and register with local bank accounts bearing their real names. Exchanges must partner with local banks for withdrawals and deposits and adhere to stringent regulations. The public has until February 13 to provide feedback on the proposal, which the regulator aims to implement in the first half of the year. Despite challenges, South Korea remains a crucial digital asset market, with the Korean won surpassing the US dollar as the largest fiat trading pair in the digital asset world last year. The Financial Services Commission is taking proactive measures to regulate the sector while balancing innovation and investor protection.