Crypto Excluded from New South Korean Donations Law
South Korea’s government has announced that cryptocurrencies, including Bitcoin, will not be included in the country’s amended donations law. Despite the popularity of cryptocurrencies in the country, the Ministry of the Interior and Safety has decided against allowing citizens to donate in crypto.
The South Korean government’s decision to exclude cryptocurrencies from the donations law could impact the country’s charities and crypto enthusiasts.
Donations Plans: Crypto Excluded
The Ministry of the Interior and Safety plans to amend the Enforcement Decree of the Act on Collection and Use of Donations. The amendments will allow citizens to donate cash alternatives such as loyalty points from tech giants, department store gift vouchers, securities, supermarket vouchers, and listed stocks. The ministry also plans to allow donations in local government-issued, KRW-pegged stablecoins and blockchain-powered e-gift vouchers. However, cryptocurrencies have been excluded from this list.
Charities to Suffer?
South Korean charities, which have been trying to launch crypto-powered donation drives, may be negatively impacted by this decision. Current South Korean law does not allow charities to accept crypto donations, forcing them to rely on domestic exchanges. The exclusion of cryptocurrencies from the amended donations law could further hinder these efforts.
Exchanges Play Key Role
South Korean charities that wish to accept crypto donations have had to partner with crypto exchanges that convert coins to cash. This process has allowed charities to circumvent the legal obstacles preventing them from directly accepting crypto donations.
Rising Popularity of Crypto Donations in South Korea?
Despite the legal challenges, crypto donations are becoming increasingly popular in South Korea. Many South Koreans are choosing to donate their coins to overseas charities. For example, South Koreans donated a total of BTC 14 to charities providing aid to victims of the 2023 Turkey–Syria earthquakes via a platform operated by Dunamu, the creator of the South Korean market-leading Upbit exchange.
Conclusion
The exclusion of cryptocurrencies from South Korea’s amended donations law could have significant implications for the country’s charities and crypto enthusiasts. Despite the rising popularity of crypto donations, the government’s decision may hinder the growth of this trend. It remains to be seen how South Korean charities and crypto exchanges will navigate this new regulatory landscape.
