By Angel Di Matteo @shadowargel
As indicated by the FSC, There are concerns that credit card cryptocurrency purchases will facilitate “the illegal departure of national funds abroad”which is why they want to expand the scope of the associated law.
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- FSC proposes to prohibit the use of credit cards to buy cryptocurrencies in South Korea
- You want to prevent this modality from being used for capital flight
- To do this, they want to expand the scope of a law already in force
- This proposal will be in the consultation period until next February 13
A new regulatory proposal by the South Korean authorities proposes prohibiting the use of credit cards to purchase cryptocurrencies, due to the risks it poses in terms of capital flight for the nation.
Reserves with the use of credit cards to buy cryptocurrencies
This is what was proposed by the Financial Services Commission (FSC) from the Asian country in a statement published on its websiteb, in which he expressed his concern that the use of credit cards to purchase cryptocurrencies applies as “the illegal departure of national funds abroad”.
The measure is part of a plan that involves prohibitions on the use of credit cards, which seeks to expand and include other activities where this type of banking products are also used for the acquisition of goods and services. The measure is intended to also apply to local and international crypto exchanges, especially due to the operational difficulties involved in the use of cryptocurrencies for financial controls.
But as for crypto exchanges, this is not the first measure of the FSC that involves these institutions. In accordance with a report published by the media CoinDesk, The regulator is working on certain regulations to further regulate the operations of these entities, requiring them to manage 80% of client funds in cold storage vaults to avoid cybersecurity risks.
Returning to the aforementioned proposal, at the moment it is open for public consultation, so interested parties will be able to comment on this initiative until next February 13.
South Korea and crypto laws
This new initiative is also part of the changes and considerations that the local government has been implementing to regulate the use and trade of cryptocurrencies.
A new law recently came into effect with which the government will make public information about the holdings of cryptocurrencies and other assets by public officials.
On the part of the companies, the FSC reported in a statement that, starting in 2024, domestic companies that issue or hold cryptocurrencies will be required to provide detailed disclosures about their assets as part of new accounting rules.
These rules will require companies to disclose how much tokens They have in their possession the business models, characteristics and accounting policies related to the sale of said assets, as well as the profits, volume, market value of those cryptocurrencies and their classification.
Subsequently, the city of Cheongju, capital of North Chungcheong province, expressed intentions to begin confiscating cryptocurrencies from those who have evaded paying taxes.
Article by Angel Di Matteo / DailyBitcoin
Picture of Unsplash
WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.
2024-01-04 21:23:42
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