- A revised contribution rule in South Korea will not apply to cryptocurrencies, such as Bitcoin, according to a May 5 announcement from government officials.
- The Ministry of the Interior and Safety stated that it wished to “expand the scope” of donations, but it has chosen not to permit individuals to provide cryptocurrency, according to Kyunghang Shinmun.
Plans for Donations: Not Include Crypto
The Act on Collection and Use of Donations Enforcement Decree will undergo revisions by the ministry.
Citizens will be able to contribute a variety of non-cash alternatives to charitable causes thanks to these amendments.
These include listed equities, securities, department store gift cards, supermarket vouchers, and loyalty points from tech giants like Naver.
The ministry also intends to allow citizens to donate blockchain-powered e-gift vouchers and local government-issued stablecoins tied to KRW.
Plans have also expanded the range of donation platforms, with new online donation choices scheduled to be approved.
When it comes to donating to charitable organizations, citizens will also have access to technology connected to automatic response systems (ARS).
In order for the July launch to occur, ministry officials urge lawmakers to accept the legal revisions.
Notwithstanding the immense popularity of Bitcoin and other tokens in the nation, the ministry did not provide an explanation for its decision to forbid individuals from donating cryptoassets.
Donations to Suffer?
The news will be devastating to South Korean organizations as well as cryptocurrency lovers.
Charities have attempted to start cryptocurrency-powered contribution campaigns in recent years. However, they have faced legal challenges.
Charities are not permitted by law in South Korea to accept cryptocurrency donations. Thus, prior efforts have been virtually solely dependent on domestic exchange assistance.
Jang Yoon-ju, a researcher for The Beautiful Foundation, one of the largest charities in South Korea, detailed the difficulties charities in the country face due to cryptocurrency in a January 2024 piece for Bokji Times.
She asserted that several contributors had “enquired about donations using cryptocurrencies.” But such queries were frequently “difficult to answer,” according to Jang.
Exchanges Are Crucial
Jang pointed out that previous attempts to introduce cryptocurrency-powered giving platforms had been unsuccessful, with significant campaigns in 2014 and 2018 ultimately failing.
According to her, cryptocurrency donations started “in earnest” in 2020 when four sizable domestic nonprofits began urging people to contribute their tokens.
However, in every instance, charitable groups have been forced to collaborate with cryptocurrency exchanges that turn coins into cash, which they then donate to the organizations.
Is Crypto Donations Getting More and More Popular in South Korea?
According to the researcher, cryptocurrency donations are growing in popularity in South Korea, where a lot of people are looking to send their coins to charity abroad.
According to Jang, South Koreans have given a total of BTC 14 to organizations that assist those affected by the disasters that struck Turkey and Syria in 2023.
The citizens used a site run by Dunamu, the company that created the popular Upbit exchange in South Korea, to make their donations.
She added that 902 South Koreans gave $118,000 worth of “digital assets” to organizations that support refugees fleeing the conflict in Ukraine last year.
Additionally, the Ukrainian government has established direct cryptocurrency donation channels for foreign contributors.
A man who allegedly provided cryptocurrency to the military forces of Ukraine was accused by Russian authorities of “high treason” last year.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
