South Korean Card Companies ban transactions to foreign cryptocurrency exchanges
Jan 24, 2018 Posted / 18820 Views
It seems like South Korea just wants to be in the news because every other minute there are some updates coming from the country. As per the latest reports in the media, the South Korean card companies are working to block cross-border payments to overseas cryptocurrency exchanges. At present, the number enlisted by the media sources say that there are 20 major crypto-exchanges that are being blocked, however, the number is likely to increase (says the Korean Credit Finance Association)
The CFAK disclosed to the local media that the South Korean companies are laboriously sculpturing a law that would block payments from overseas digital currency exchanges. The CFAK is basically a non-profit organization with 68 members that includes 8 credit card companies, 21 instalment financing companies, and 18 venture capital companies. Yonhap last week quotes an official of the association saying that
"Credit [card] companies are voluntarily blocking payments to overseas virtual currency exchanges."
He further added and told the new agency
“We will continue to prevent transactions from being carried out if a foreign [cryptocurrency] exchange is registered as a merchant.”
The media publication further noted that the association described the credit card companies involved with the association are in the process of discontinuing the credit card transactions. It described
“eight domestic credit card companies are in the process of suspending credit/check card transactions so that they [users] cannot buy virtual currency at overseas virtual currency exchanges with domestic cards.”
There are precisely 8 members of the association that are only card companies: BC Card, Hyundai Card, KB Kookmin Card, KEB Hana Card, Lotte Card, Samsung Card, Shinhan Card, and Woori Card.
Business Korea cited the association on Monday:
"Currently, only 20 major digital currency exchanges are blocked but we will confirm and share information about exchanges grasped by individual card issuers. An increasing number of exchanges will be continuously blocked in the future."
The news outlet also recited industry sources illuminating, “Lotte Card and Shinhan Card have introduced systems blocking transactions by investors for the purchase of digital tokens from 20 overseas virtual currency exchanges using either debit or credit cards.”
According to the reports, Woori Card also arranged for the same on January 18 while additional card issuers, including Kookmin Card, are preparing to finish the blockade by the end of this week.
Nevertheless, the publication recorded that there is a burgeoning contention over how efficient this method to restrict investors from accepting overseas exchanges is, mentioning that “investors can purchase digital currencies through foreign simple payment systems, including Paypal.”
Similar events unfolded last month when some Korean card companies abandoned their credit card points-to-cryptocurrency conversion services. Shinhan Card and KB Kookmin Card have suspended their service to switch card points to bitcoin.
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