BOK governor says crypto cards pose regulatory evasion risks

Bank of Korea Governor Shin Hyun-song said the central bank will closely monitor the potential for regulatory evasion through overseas crypto cards, as well as related consumer protection issues, Digital Asset reported. At the National Assembly today, Shin made the remarks after Democratic Party lawmaker Kim Nam-jun raised concerns about possible regulatory circumvention through crypto cards. Shin said there are various risks, as Kim pointed out, particularly because crypto card operators are all based overseas and mainly rely on U.S. dollar stablecoins. Kim said online posts are sharing so-called tips on crypto cards, including cashback and discount benefits as well as ways to avoid customs duties in overseas purchases. Kim added that a blind spot could emerge for customs enforcement if South Korean nationals buy expensive goods, alcohol, or luxury items abroad with coin cards and the spending is not tracked domestically.