The South Korean Ministry of the Interior and Safety announced that an amended donations law will exclude crypto, including Bitcoin. The ministry plans to broaden the scope of donations by allowing citizens to donate a variety of cash alternatives to charitable causes, such as loyalty points, gift vouchers, securities, and listed stocks. The amendments will also include local government-issued stablecoins and e-gift vouchers. Additionally, the ministry plans to expand donation platforms and allow for the use of automatic response systems to make donating easier for citizens. The legal amendments are expected to be approved by lawmakers for a July rollout.
The decision not to allow citizens to donate cryptoassets could prove detrimental to both crypto enthusiasts and South Korean charities. In recent years, charities have attempted to launch crypto-powered donation drives but have faced legal obstacles due to South Korean law not allowing for crypto donations. Past campaigns have heavily relied on the aid of domestic exchanges to facilitate the conversion of crypto to cash for charitable organizations. Despite the rising popularity of crypto donations in South Korea, challenges remain for charities seeking to accept and manage crypto contributions.
Charities in South Korea have encountered difficulties in launching crypto-powered donation platforms, with previous attempts failing to gain traction. While some large domestic charitable organizations began encouraging crypto donations in 2020, they had to partner with exchanges to convert the coins to cash to receive the contributions. The researcher from The Beautiful Foundation highlighted the increasing trend of South Koreans donating cryptocurrency to overseas charities, citing specific examples of donations made to aid victims of natural disasters and humanitarian crises. She also mentioned a platform operated by Dunamu, the creator of the Upbit exchange, through which South Koreans have donated digital assets to charities.
Despite the challenges faced by South Korean charities in accepting crypto donations, the popularity of such contributions is on the rise in the country. Many individuals have shown interest in donating their coins to overseas charities, with significant contributions made to causes in Turkey, Syria, and Ukraine. The involvement of crypto exchanges in facilitating these donations has played a crucial role in enabling citizens to support charitable organizations using digital assets. While the exclusion of crypto from the amended donations law may present obstacles for crypto enthusiasts and charities, the ongoing trend of crypto donations in South Korea suggests a growing interest in supporting charitable causes through digital assets.
