South Korea has recently updated its donation legislation, but the amended laws exclude digital currencies like Bitcoin to be used for donations. The Ministry of the Interior and Safety announced that crypto assets will not be included in the amended donations law despite efforts to broaden the scope of acceptable donations.
The amendments aim to expand the range of acceptable donations by allowing citizens to contribute various alternatives to cash, such as loyalty points, gift vouchers, securities, and listed stocks. The initiative plans to modernize donation methods and expand the options available to contribute to charitable organizations or causes. However, the new laws will not permit the use of cryptocurrencies for donations.
The updated legislation, expected to take effect in July, will introduce the new donation methods. The Ministry of the Interior and Safety in South Korea intends to amend the Enforcement Decree of the Act on Collection and Use of Donations, allowing citizens to donate various cash alternatives to charitable causes.Ā
Despite the growing popularity of crypto donations in South Korea, legal obstacles have hindered charitable organizations from utilizing this form of contribution, forcing them to rely on traditional means or seek assistance from domestic exchanges for converting crypto to cash.
Although digital asset donations remain popular in South Korea, the Ministry of the Interior and Safety did not provide specific reasons for their exclusion from the updated legislation. However, the amended laws are poised to allow donations in local government-issued stablecoins pegged to the Korean won and blockchain-powered e-gift vouchers. Additionally, the scope of donation platforms is set to expand, with more online donation options expected to receive approval.Ā
Citizens will also have the option to utilize automatic response systems (ARS) technology to facilitate donations to charitable causes.Ā
Charities in South Korea have faced challenges in establishing crypto-powered donation platforms, with previous efforts struggling to gain traction. While some major domestic charitable organizations began promoting crypto donations in 2020, they had to collaborate with exchanges to convert digital coins into cash to receive the contributions.Ā
According to recent research, South Koreans have been donating cryptocurrency to foreign countries, particularly in response to natural disasters and humanitarian crises. The researcher highlighted a platform operated by Dunamu, the company behind the Upbit exchange, through which South Koreans have contributed digital assets to charitable causes.
As reported by TheGivingBlock, the estimated global donation using cryptocurrency surpassed $2 billion as of January 2024. However, South Korean charities will not have access to this market due to the exclusion of digital assets from the amended donation legislation. This news will likely disappoint crypto enthusiasts and charitable organizations in South Korea, which have faced challenges in launching crypto-powered donation drives in recent years due to legal restrictions.
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