Crypto, including Bitcoin, will be excluded from an amended South Korean donations law, government officials announced on May 5. The Ministry of the Interior and Safety has decided against allowing citizens to donate crypto as part of their plans to expand the scope of donations. The amendments to the Enforcement Decree of the Act on Collection and Use of Donations will allow citizens to donate a variety of cash alternatives to charitable causes, excluding crypto. The scope of donation platforms has also been broadened in the plans, with more online donation options set to be green-lighted. Ministry officials aim to have the legal amendments approved in time for a July rollout.
The decision not to allow citizens to donate cryptoassets may come as a disappointment to crypto enthusiasts and South Korean charities. In recent years, charities in South Korea have attempted to launch crypto-powered donation drives, facing legal obstacles due to the country’s laws not allowing for crypto donations. Past campaigns have relied on domestic exchanges for support. Despite potential donors showing interest in making cryptocurrency donations, charities have struggled to facilitate such donations. Various attempts to launch crypto-powered donation platforms in the past have failed, with notable drives eventually coming to nothing.
Crypto donations have been gaining popularity in South Korea, with many individuals looking to donate their coins to overseas charities. Jang Yoon-ju, a researcher for one of South Korea’s largest charities, The Beautiful Foundation, documented the challenges faced by charities in accepting crypto donations in the country. She noted that donations made using crypto began in earnest in 2020, with charitable organizations teaming up with crypto exchanges to convert coins to cash for donation. South Koreans have donated significant amounts in crypto to charities helping victims of disasters such as the Turkey-Syria earthquakes and refugees of the war in Ukraine.
Despite the rising popularity of crypto donations in South Korea, the government’s decision to exclude crypto from the amended donations law may hinder the efforts of charities to accept digital assets. The inability to accept crypto donations directly could limit the potential contributions from individuals who prefer to donate in cryptocurrency. The exclusion of crypto from the list of acceptable donation methods may result in missed opportunities for charities to receive support from the crypto community. However, the expanded scope of donation platforms and online options could still provide avenues for individuals to contribute to charitable causes using alternative means.
The Ministry of the Interior and Safety’s decision reflects a cautious approach towards regulating crypto donations in South Korea. By excluding crypto from the list of acceptable donation methods, the government may be aiming to address potential regulatory issues and concerns related to the use of digital assets for charitable purposes. While the decision may disappoint crypto enthusiasts and charities seeking to leverage the popularity of cryptocurrencies for fundraising, it highlights the need for clear guidelines and regulations governing crypto donations. With the legal amendments set to be approved in the coming months, it remains to be seen how the exclusion of crypto will impact the landscape of charitable donations in South Korea.
In conclusion, the exclusion of crypto, including Bitcoin, from the amended South Korean donations law represents a significant development in the country’s approach to regulating charitable contributions. While the decision may restrict the ability of charities to accept crypto donations directly, it also highlights the government’s efforts to expand the scope of acceptable donation methods and platforms. As crypto donations continue to gain traction in South Korea, stakeholders in the crypto community and charitable sector will need to navigate the evolving regulatory landscape to facilitate donations effectively. By striking a balance between innovation and regulatory compliance, South Korea can foster a supportive environment for charitable giving while addressing potential concerns associated with the use of digital assets for donations.
