Government officials in South Korea announced on May 5 that an amended donations law will exclude crypto, including Bitcoin. The Ministry of the Interior and Safety is planning to make amendments to allow citizens to donate various alternatives to cash, such as loyalty points, securities, and local government-issued stablecoins. They also plan to expand donation platforms to include more online options and the use of automatic response systems for giving to charities. The legal amendments are expected to be approved by lawmakers in time for a July rollout.
The decision to exclude crypto from donations will be disappointing for both crypto enthusiasts and South Korean charities. Charities in the country have faced legal obstacles in launching crypto-powered donation drives. South Korean law currently does not allow charities to accept crypto donations, which has led to campaigns relying on domestic exchanges. Despite the challenges, there has been a rising popularity of crypto donations in South Korea, with many seeking to donate their coins to overseas charities. For example, donations of Bitcoin to aid victims of natural disasters and refugees in war-torn countries have been facilitated by platforms operated by crypto exchanges.
In recent years, South Korean charities have made attempts to launch crypto-powered donation platforms, but these efforts have faced setbacks. Past campaigns had to work with exchanges to convert coins to cash before passing on the donations to organizations. Even though there has been an increasing interest in donating crypto to charities, the legal framework in South Korea has limited the ability of charities to accept such donations directly. The exclusion of crypto from the amended donations law may hinder the efforts of charities to leverage digital assets for fundraising purposes.
In response to inquiries about cryptocurrency donations, charities in South Korea have faced challenges in providing clear answers due to the legal restrictions on accepting crypto donations. The popularity of crypto donations in the country has led to South Koreans donating digital assets to charities involved in various humanitarian causes. Platforms operated by local exchanges have enabled citizens to donate crypto to support victims of natural disasters and refugees in conflict zones. The use of blockchain technology and stablecoins has also been considered for charitable giving in the country.
The amended donations law in South Korea will expand the scope of acceptable contributions to charitable causes, but the exclusion of crypto may limit the potential for innovative fundraising methods. Despite the challenges faced by charities in accepting crypto donations directly, the popularity of digital assets for charitable giving continues to grow in the country. The involvement of domestic exchanges in facilitating crypto donations to charities highlights the key role that these platforms play in enabling individuals to support humanitarian causes through digital assets. As the legal landscape evolves, there may be opportunities for charities to explore new ways to accept and utilize crypto donations in the future.
