South Korea’s Financial Services Commission, the country’s top financial regulator, today proposed an amendment to its credit finance act, which aims to effectively prohibit local citizens from purchasing cryptocurrencies using credit cards.
The main reason for this new amendment is to limit its crypto traders from buying crypto on foreign crypto exchanges, the regulator said. The FSC noted in its legislative notice that concerns have emerged over the illegal outflow of domestic funds, money laundering and the encouragement of speculative behavior, which led to the decision.
The regulator plans to collect public feedback on the amendment proposal until Feb. 13. It’s expected to be reviewed and voted on with the aim of implementation in the first half of 2024, according to Yonhap News Agency.
Under a 2021 amendment to the financial reporting law, South Korean crypto users are required to trade using withdrawal and deposit accounts on local exchanges, verified with their real names. Local trading platforms are also required to undertake rigorous licensing preparations to provide fiat-to-crypto services, including securing a partnership with a local bank.

