The newly amended donation legislation in South Korea has excluded digital currencies, which could have significant implications for the country’s charities and donation campaigns.
According to a report by local media outlet Kyunghyang Shinmun on May 5, the Ministry of Public Administration announced amendments to South Korea’s “Donations Act” have been filed. The amendments impose restrictions on the use of crypto assets for donations.
Starting in July, individuals wishing to donate to charitable organizations or causes will have new options, such as department store gift vouchers, stocks, and loyalty points from Korean internet giant Naver. However, donations using crypto assets like Bitcoin will not be allowed.
The original act, enacted in 2006, did not account for the various payment methods available today nor the widespread use of smartphones. It aimed to broaden donation methods beyond bank transfers and online methods, including automated response systems, postal services, and logistics services.
Despite the popularity of digital asset donations in South Korea, the Ministry did not provide a reason for their exclusion. However, the legislation will permit donations in local government-issued, KRW-pegged stablecoins and blockchain-issued gift vouchers.
South Korea Crypto Crime Crackdown
In Jan 2024, TheGivingBlock estimated that people worldwide had given over $2 billion using cryptocurrency. Local charities couldn’t even participate in this market.
Across the ocean, more than half of American charities now accept digital currency donations. This reflects a growing trend towards embracing new forms of giving. It indicates a shift in how people contribute to charitable causes, with technology playing a significant role.
In late April, South Korea announced its plans to upgrade its temporary crypto crime investigation unit into a permanent department, aiming to combat the surge in crypto crimes and financial fraud.
However, In related news, Crypto.com, a crypto exchange in Singapore, is having trouble entering South Korean markets because of rules.
In April, South Korean authorities found problems with Anti-Money Laundering (AML) stuff in Crypto.com’s data. They started an “emergency on-site inspection” to watch what they were doing.
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