The Donations Act in South Korea is undergoing modifications, as the Ministry of Public Administration has submitted proposed changes. These modifications will introduce new channels through which non-profits can receive donations, starting in July. However, digital currencies like Bitcoin will not be included in the revised donation laws.
The Ministry of Public Administration announced on May 5 that they had submitted modifications to the Donations Act, which will restrict the use of cryptocurrency for donations. Kyunghyang Shinmun, a local media site, reported this development. While donations to non-profits will be accepted through various new channels from July onwards, such as department store gift cards, stocks, and loyalty points from Korean internet giant Naver, digital currencies will not be among the accepted forms of donation.
The Donations Act, which governs the acquisition and use of donated items, was initially passed in 2006 when there were fewer payment options available and cell phones were not as prevalent as they are today. The act has since been updated to include additional ways to donate, such as automatic response systems, postal services, logistical services, online transactions, and bank transactions.
Despite the popularity of digital asset contributions in South Korea, the Ministry has not provided a rationale for excluding cryptocurrencies from the revised donation laws. However, the law does plan to allow donations in local government-issued stablecoins that are pegged to the Korean won, as well as blockchain-issued gift vouchers.
Unfortunately, starting from January 2024, local charities in South Korea will not have access to the cryptocurrency donation market, which has received over $2 billion in crypto donations worldwide, according to TheGivingBlock. In contrast, it has been reported that over half of American organizations now accept digital assets as donations.
In late April, reports indicated that South Korea is considering transforming its special unit, which investigates cryptocurrency crimes, into an official agency. This move is aimed at combating the increasing number of crimes and frauds involving cryptocurrency.
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