Home South Korea Flags $10B Crypto Card Payment Surge As Bank Of Korea Pledges Closer Oversight

South Korea Flags $10B Crypto Card Payment Surge As Bank Of Korea Pledges Closer Oversight

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South Korea Flags $10B Crypto Card Payment Surge As Bank Of Korea Pledges Closer Oversight
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  • South Korea’s foreign-issued crypto card payments are estimated to have reached $10 billion across overseas platforms.
  • Bank of Korea Governor Shin Hyun-song pledged closer monitoring of crypto cards and improved regulatory coordination.
  • South Korea’s domestic stablecoin trading averaged around 200 billion won daily as of July.

Bank of Korea Governor Shin Hyun-song has pledged closer monitoring of foreign-issued cryptocurrency payment cards as lawmakers raise concerns about an estimated $10 billion in cumulative payments through overseas platforms. The growing use of these cards has highlighted gaps in South Korea’s financial oversight, consumer protection, and payment data collection.

On Monday, during an audit by the National Assembly Strategy and Finance Committee, Shin spoke about the cards. Shin said the cards carry risks because the companies that issue them are based outside the country and depend a lot on stablecoins that are tied to the dollar. Shin promised to gather information and talk with the relevant government departments to ensure better control.

South Korea Struggles To Track Overseas Crypto Card Spending

During the hearing, Democratic Party lawmaker Kim Nam-jun cited estimates suggesting cumulative crypto card payments through overseas platforms had reached $10 billion, equivalent to approximately 1.341 trillion won.

Kim also noted that South Korea’s domestic stablecoin trading volume averaged around 200 billion won per day as of July. Despite these figures, authorities reportedly lack reliable data on how much South Korean residents spend using foreign-issued crypto cards.

Crypto payment cards allow users to spend Bitcoin (BTC) or stablecoins at merchants. Their digital assets are converted into conventional currency during checkout, allowing merchants to receive payments in local currency. However, additional intermediaries can increase transaction fees compared with traditional payment methods.

Consumer Protection & Customs Risks Under Scrutiny

Lawmakers said that foreign card providers and cryptocurrency exchanges might cause problems for people in South Korea. If a service stops working, goes out of business, or gets hacked, people might not be able to get their money

The way payments work also makes it harder to watch activity. When people buy things in South Korea, the money might go through companies in dollars which means the spending isn’t seen in the usual reporting systems.

Kim also talked about concerns that expensive purchases made outside the country could evade the rules for tracking transactions, leading to missing information on customs forms. Deals that give people discounts on subscriptions and rewards for spending have made these services even more popular.

Stay informed with the latest trends in Web3, blockchain innovation, and cybersecurity updates at 3verseTV

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