Users of credit cards in south korea can no longer make transactions on the platforms of exchange of crypto-foreign currencies

At the present time, twenty of platforms of exchange of crypto-currencies are blocked by the credit card companies in South Korea. In addition, this number is expected to increase according to the Korean Credit Finance Association (KCFA).

Bitcoin card/Source : Studioeqdesign

Focus on the national market

First, it is important to note that the KCFA is a non-profit organization which has 68 members, of which 8 credit card companies, 21 leasing companies, 21 companies, financings and borrowings, and 18 venture capital firms. It is a responsible of the association who has given information to the news agency Yonhap. “The credit card companies are intentionally the payouts on the platforms of exchange of virtual currency that are located abroad. “The association explains that the eight companies in question are being suspended all transactions by credit card and debit so that users will not be able to buy crypto-currencies from platforms located outside of canada.

Credit cards Shinhan/Source : Paisacall

Is this method really effective ?

Currently, only 20 platforms are affected by this blocking, but the KCFA confirms that others will follow. However, another news KCFA note that the efficiency of this method to prevent domestic investors to use foreign platforms is not very effective, because these same investors can purchase digital currency through payment systems as simple as Paypal. Anyway, two credit card companies, namely, Shinhan Card and KB Kookmin have already put an end to their currency conversion service fiat digital currencies and vis versa. Moreover, recently, we have already learned that a few major banks in south korea were the conditions before allowing the transactions of crypto-currencies.

Source : NewsBitcoin