Bank of Korea Governor Monitors Risks of Crypto Card Regulatory Evasion

Bank of Korea Governor Shin Hyun-sung stated that he will closely monitor the potential for regulatory evasion through overseas crypto cards and issues related to consumer protection. During a parliamentary session on the 12th, in response to a comment from Democratic Party lawmaker Kim Nam-jun, Governor Shin mentioned that there are various risks because the entities behind crypto cards are located abroad and are primarily based on dollar stablecoins. Crypto cards are designed to allow users to utilize their virtual assets for payments, and Governor Shin explained that the payment structure involves conversion to fiat currency through intermediaries, resulting in significantly high fees. Lawmaker Kim pointed out that while the use of crypto cards issued by foreign businesses is spreading, the Bank of Korea and financial authorities are not accurately grasping the scale of usage. He argued that it may be difficult to capture the precise flow in existing payment statistics, especially when digital assets are transferred to overseas exchanges before making payments. Additionally, concerns were raised about the possibility of crypto cards being misused as a means of regulatory evasion, and Governor Shin stated that he will continue to monitor the situation closely and consult with relevant agencies.

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