South Korea’s new donation laws do not permit cryptocurrency.

Digital currency donations are no longer permitted under recently modified donation laws in South Korea. Kyunghyang Shinmun reported on May 5 that the Ministry of Public Administration has limited the usage of cryptocurrency assets for charitable donations made by the modified “Donations Act.” Alternative ways to donate to charity causes will be available starting in July. These include department store gift cards, stocks, and loyalty points from Korean tech company Naver. However, cryptocurrencies like Bitcoin will not accepted. Donation drives and organizations across the nation may face difficulties as a result of this exclusion.

The act on the gathering and utilization of donated products initially implemented in 2006, a time when payment options more limited and smartphones not as common. Donation options now include automated response systems, postal services, and logistics services, in addition to bank transfers and internet methods.

Regulatory Challenges in South Korea’s Cryptocurrency Landscape

The Ministry could not explain why donations in digital assets, which are very popular in South Korea, not accepted; nevertheless, the law will allow donations in gift certificates issued by blockchain companies and local government-issued KRW-pegged stablecoins. On the other hand, in America, it recently reported that over half of charity organizations there now take gifts in digital assets.

It reported in late April that South Korea intended to address the rising number of financial fraud and crypto-related crimes by promoting its interim unit dedicated to investigating crypto crimes into an official agency. In related news, regulatory obstacles are making it difficult for Singapore-based cryptocurrency exchange Crypto.com to penetrate the South Korean market.

According to a Cointelegraph story from April, South Korean regulators discovered issues with Anti-Money Laundering (AML) in the exchange’s data submissions and initiated an “emergency on-site inspection” to keep an eye on the company’s operations.

To sum up, the decision made by South Korea to limit donations made with digital currency under the revised “Donations Act” is a significant change in the laws governing charitable giving. Even while there will be other ways to donate, this move may provide difficulties for groups and donation drives nationwide, underscoring how philanthropy is changing in the United States.