South Korea's Financial Services Commission, the country's top financial regulator, onWednesday proposed an amendment to its credit finance act, which aims to effectively prohibitlocal citizens from purchasing cryptocurrencies using credit cards.

The main reason for this new amendment is to limit its crypto traders from buying crypto onforeign crypto exchanges, the regulator said. The FSC noted in its legislative notice thatconcerns have emerged over the illegal outflow of domestic funds, money laundering and theencouragement of speculative behavior, which led to the decision.

The regulator plans to collect public feedback on the amendment proposal until Feb. 13. It'sexpected to be reviewed and voted on with the aim of implementation in the first half of 2024reportedly.

Under a 2021 amendment to the financial reporting law, South Korean crypto users arerequired to trade using withdrawal and deposit accounts on local exchanges, verified with theirreal names. Local trading platforms are also required to undertake rigorous licensingpreparations to provide fiat-to-crypto services, including securing a partnership with a locabank.

(Source: The Block)