South Korea is advancing its planned prohibition on credit card use for cryptocurrency transactions as part of its regulatory changes.

Financial Services Commission ( FSC The South Korean government has suggested an adjustment to its credit finance legislation to prohibit residents from using credit cards to buy cryptocurrency.

The new FSC amendment aims to prevent local traders from acquiring cryptocurrencies on international exchanges, with a focus on issues like capital flight, anti-money laundering, and illicit promotions driving this initiative. speculative behavior Concerns over financial integrity, illicit transactions, and market stability served as significant elements influencing this regulatory decision.

The regulatory body is set to collect public opinions regarding the proposed changes until February 13, followed by an evaluation and voting process, with plans for implementation slated for the first half of 2024.

In line with revisions made to financial reporting laws in 2021, South Korean traders are required to use verified accounts on local exchanges for deposits and withdrawals in their real names. Furthermore, local trading platforms must meet rigorous licensing standards before offering fiat-to-crypto services, including forming partnerships with banks. cryptocurrency users South Korea is ramping up its cryptocurrency regulations amidst a booming local market, where public engagement is prevalent. The increasing allure of cryptocurrencies has prompted governmental agencies to recognize the pressing need for a regulatory framework to mitigate risks and preserve financial stability.

The Financial Supervisory Service (FSS) of South Korea has recently initiated plans to establish a dedicated Virtual Asset Bureau focused on overseeing and scrutinizing the virtual asset market. This investigative unit will have the authority to probe instances of manipulation affecting the virtual asset ecosystem.

South Korea The new bureau will also support the FSC in developing supplementary laws under the 'Virtual Asset User Protection Act,' which is set to roll out at the outset of 2024. Meanwhile, the assessment of virtual asset providers is expected to take place later in the year.

In recent news, Wemade, a South Korean video game developer, faced a hefty tax bill of $41 million following a tax inquiry linked to its cryptocurrency, WEMIX. revealed intentions This action was triggered following the establishment of South Korea’s Virtual Asset Protection Act, intended to combat illegal trading behaviors such as market manipulation and insider trading.

The anticipated role of the Virtual Asset Bureau South Korea is taking assertive measures to regulate cryptocurrency activities, reflected in the latest decisions by the FSC, which address concerns surrounding financial security, illegal activities, and fostering responsible trading conduct.

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