Despite the global rise in crypto donations, South Korea has made the decision to exclude digital currencies from approved donation methods in recent amendments to the “Donations Act” of 2006. This move comes at a time when cryptocurrencies are increasingly being used for charitable purposes around the world, with over $2 billion in donations reported in January 2024.
The decision not to include cryptocurrencies as an acceptable form of donation is a cautious approach reflecting regional uncertainties about digital currencies. The government has not provided specific reasons for leaving crypto off the approved list, despite expanding the law to include other modern payment methods such as gift vouchers and stocks.
This exclusion also comes amidst regulatory concerns in the region, as evidenced by the recent postponement of crypto exchange Crypto.com’s launch in South Korea due to anti-money laundering practices. The Ministry of Public Administration has updated the act to integrate new donation methods like automated response systems and postal services, adapting to technological advancements and changes in consumer behavior.
While the decision may disappoint crypto enthusiasts in South Korea, it highlights the ongoing debate and challenges surrounding the acceptance and regulation of digital currencies in the country. As the global crypto landscape continues to evolve, it will be interesting to see how South Korea navigates these complexities in the future.
