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Financial Authorities Prohibit Universities from Opening Corporate Accounts
Financial authorities in South Korea have taken a strict stance by prohibiting universities from opening corporate accounts for coin transactions. This move is aimed at preventing potential money laundering activities associated with cryptocurrency donations.
Concerns Over Money Laundering Risks
The decision to disallow universities from utilizing corporate accounts stems from concerns raised by the Korean Financial Intelligence Unit (KoFIU) and the Ministry of Education. They highlight the ease with which corporate accounts can be exploited for money laundering due to the lack of individual verification.
Universities Struggle with Crypto Donations
As a result of this prohibition, universities are facing challenges in converting cryptocurrency donations received from certain crypto businesses into cash. Despite requests from some universities to open corporate accounts for this purpose, the authorities are firm in their stance.
Policy Impact on Fundraising Efforts
This new policy not only affects universities but also extends to charities, restricting them from accepting digital currencies for donations. The decision comes amidst the growing popularity of cryptocurrencies like Bitcoin in South Korea.
Possible Solutions for Universities
While the ban on cryptocurrency donations remains in place, there may be a lifeline for universities already holding such donations. Authorities are considering the establishment of a system to convert existing coins into cash, providing a potential solution for universities struggling with this issue.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
