The Ministry of the Interior and Safety in South Korea recently announced amendments to the Enforcement Decree of the Act on Collection and Use of Donations. Despite plans to broaden the scope of acceptable contributions, including loyalty points and various vouchers, cryptocurrency, including Bitcoin, will not be accepted.
The decision to exclude crypto donations was unexpected, especially considering the popularity of digital assets in the country. Although no specific reasons were provided for this exclusion, it poses a challenge for both crypto enthusiasts and South Korean charities.
Charities in South Korea have previously attempted to leverage cryptocurrencies for donation drives, facing legal hurdles due to existing regulations that prohibit the acceptance of crypto donations. While some efforts were made to facilitate crypto donations through domestic exchanges, these initiatives were not fully successful.
According to Jang Yoon-ju, a researcher for The Beautiful Foundation, one of South Korea’s largest charities, there has been growing interest in crypto donations among potential donors. However, the lack of clarity in regulations has made it difficult for charities to respond to inquiries about accepting cryptocurrency.
Despite these challenges, crypto donations have gained traction in South Korea, particularly for international causes such as aiding victims of natural disasters and refugees of conflicts. For instance, South Koreans donated BTC 14 to charities assisting victims of the 2023 Turkey-Syria earthquakes and contributed digital assets worth approximately $118,000 to aid refugees in Ukraine.
While crypto donations are on the rise, the current legal landscape in South Korea limits the ability of charities to directly accept digital assets. As the government proceeds with its amendments to donation laws, the exclusion of cryptocurrency highlights ongoing regulatory uncertainties surrounding its use in charitable contributions.