South Korea Says No to Crypto Donations

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As a seasoned crypto investor with a deep understanding of the industry’s evolution and trends, I find South Korea’s decision to ban cryptocurrency donations for charitable causes disheartening. The country’s stance is a step backward in embracing the potential of blockchain technology and digital assets in various aspects of society, including philanthropy.

South Korea has made it clear that cryptocurrencies will not be permitted for charitable giving within its borders, as reported by Kyunghyang Shinmun. This restriction is included in a proposed revision to the “Donations Act”.

The Ministry of the Interior and Safety announced that they revised and expanded the “Donations Act” to allow for a wider range of acceptable donations, yet digital assets such as Bitcoin (BTC) were excluded from these changes.

South Korea Says No Crypto Donations

The Donations Act, which was enacted in 2006, predates the widespread use of smartphones and the emergence of numerous payment methods. However, with the advent of innovations such as cryptocurrencies in 2009, the landscape has significantly changed, leaving the rules obsolete as they do not address the multitude of modern payment options.

In my role as an analyst, I would express it this way: The Ministry reviewed the Donations Act in early 2024 and proposed fresh restrictions, banning digital assets such as cryptocurrencies despite the surging crypto market in South Korea. However, the revised legislation embraces donations in stablecoins pegged to the local currency and blockchain-based gift vouchers. Additionally, it continues to endorse conventional bank transfers and online payments.

The report indicates that the new regulations include features such as automated responses, postal services, and logistics offerings. Pending approval from the State Council following a legislative announcement by June 10, this legislation is set to take effect in July.

A representative from the Ministry of Public Administration and Security announced their intention to move forward with the necessary steps to pass the enforcement ordinance by the close of July. Once passed, it will take effect straightaway.

South Korea to Accept Gift Cards for Donations

As a crypto investor, starting from July, I can explore new ways to contribute to charities beyond the traditional methods. Instead of just writing checks or using credit cards, I now have the option to donate department store gift vouchers, stocks, and even loyalty points from companies like Naver. This diversity in giving methods not only broadens my philanthropic horizons but also allows me to maximize the value of my assets.

The revised legislation specifies the particular objectives for gathering charitable contributions. These include aiding children, teenagers, and those with disabilities; fostering employment opportunities; tackling issues related to low birth rates, aging populations, and rural depopulation; rejuvenating local areas; and serving other causes that benefit the public.

The law also established the second Monday of December each year as “Donation Day.” On this day, both national and local administrations are authorized to arrange special observances and grant incentives to those who make donations.

Currently in South Korea, charities do not accept cryptocurrencies as valid payment methods for donations. However, this comes as digital asset donations are on the rise worldwide. According to TheGivingBlock, over $2 billion has been donated using virtual assets by January 2024.

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2024-05-06 12:00