SEOUL, Dec. 26 (Korea Bizwire) – A credit card points for Bitcoin swap service currently offered by KB Kookmin Card and Shinhan Card is on its last legs, as the respective firms have decided to shutter the service in January.
KB Kookmin Card and Shinhan Card points can be redeemed for Bitcoins at cryptocurrency exchange Coinplug, which has partnership agreements with both banks.
Points on KB Kookmin Card’s “Liiv Mate” and Shinhan Card’s “Fan Club” can be used to purchase Bitcoin. Called My Shinhan Point, one unit of Shinhan Card’s credit card points equals 1 won in value.
Shinhan Card will put a complete halt to its Bitcoin swap service on January 15, with KB Kookmin Card following suit on January 22.
Previously, a service that allowed purchases of cryptocurrency using credit cards at the nation’s largest cryptocurrency exchange Bithumb was shut down. The decision was made after concerned voices pointed out that the service could be exploited by criminals using counterfeit credit cards.
The government’s views on the currently overheated cryptocurrency market as a social problem have persuaded credit card firms to shutter their services.
Ever since December 13, when Financial Supervisory Service director Choi Hong-sik expressed the government’s intention to ban financial services firms from directly dealing or setting up shop in the cryptocurrency market, banks have one by one halted their cryptocurrency-related offerings.