Tougher Rules In South Korea: Credit Card Crypto Ban Highlights Regulatory Split With US

South Korea is taking steps to tighten cryptocurrency regulations, aiming to ban the use of credit cards for purchasing cryptocurrencies.

The Financial Services Commission proposed amending the Credit Finance Act to explicitly prohibit using credit cards to buy cryptocurrency. This aims to curb illegal fund outflows and speculation and may be implemented in the first half of 2024.

Is South Korea Tougher on Crypto Than The U.S.? South Korea’s strict regulatory approach contrasts with America’s more cautious approach to balancing innovation and investor protection.

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This development positions South Korea as adopting a more restrictive and possibly more hostile attitude towards cryptocurrencies compared to the U.S.

Impact on the Global Cryptocurrency Landscape: South Korea’s decision could set a precedent for other nations grappling with the challenges posed by the burgeoning crypto market.

It highlights the delicate balance governments need to strike between consumer protection and stifling tech progress.

This move also raises questions about how such regulations will impact the global cryptocurrency landscape, especially in countries where crypto trading is gaining momentum.

Meanwhile, the Central Bank of Nigeria (CBN) issued new guidelines allowing virtual asset service providers to open bank accounts. The decision marks a shift in the country’s regulatory approach towards crypto.

Nigeria, which is Africa’s largest economy, previously banned financial institutions from engaging with crypto firms.

In a statement released on Tuesday, the CBN stated, “Current trends globally have shown that there is a need to regulate the activities of virtual assets service providers which include cryptocurrencies and crypto assets.”

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