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Crypto Excluded from South Korean Donations Law Amendments
Government officials in South Korea announced on May 5 that crypto, including Bitcoin, will be excluded from an amended donations law. The Ministry of the Interior and Safety aims to expand the scope of donations but has decided against allowing citizens to donate crypto assets.
Donations Plans: Crypto Excluded
The ministry is planning to make amendments to the Enforcement Decree of the Act on Collection and Use of Donations. These amendments will enable citizens to donate various cash alternatives to charitable causes, such as:
- Loyalty points from tech giants like Naver
- Department store gift vouchers
- Securities
- Supermarket vouchers
- Listed stocks
In addition, citizens will have the option to donate local government-issued, KRW-pegged stablecoins and blockchain-powered e-gift vouchers. The plans also include broadening the scope of donation platforms, with more online donation options to be approved. Citizens can utilize automatic response systems (ARS)-related technology for charitable donations as well.
The ministry is seeking approval from lawmakers for the legal amendments to be implemented by July.
Charities to Suffer?
The exclusion of crypto donations will impact not only crypto enthusiasts but also South Korean charities. In recent years, charities have attempted to launch crypto-powered donation drives but faced legal obstacles. South Korean law currently does not permit charities to accept crypto donations, leading past campaigns to rely heavily on domestic exchanges.
In a documented article, a researcher highlighted the challenges faced by charities in accepting crypto donations. Despite the rising popularity of crypto donations in South Korea, legal restrictions have hindered direct acceptance by charities.
Various attempts to launch crypto-powered donation platforms have faced challenges, with past drives relying on exchanges to convert tokens to cash for donations to charitable organizations.
Rising Popularity of Crypto Donations in South Korea?
Despite the legal barriers, crypto donations have been gaining popularity in South Korea. Individuals have donated significant amounts to charities involved in international aid efforts, such as providing assistance to victims of natural disasters and refugees of conflicts.
The use of crypto for charitable donations is on the rise, with South Koreans contributing to causes globally. Platforms facilitating crypto donations have seen increased activity, indicating a growing interest in using digital assets for philanthropic purposes.