South Korean financial regulators have implemented a ban preventing universities from setting up corporate accounts for cryptocurrency transactions. Consequently, these institutions are facing challenges in converting crypto donations from specific businesses into traditional cash.
According to the Chosun Ilbo, local authorities expressed worries that corporate accounts, unlike individual ones linked to real identities, pose a higher risk of being exploited for money laundering due to the absence of personal verification measures.
The Korean Financial Intelligence Unit (KoFIU) and the Ministry of Education are said to be maintaining their stance on disallowing universities from establishing corporate accounts for handling cryptocurrency transactions.
South Korea Universities Stuck with Crypto Donations, New Rules Planned
This move comes in response to requests from several universities to establish corporate accounts for converting large cryptocurrency donations they’ve received into cash.
A senior official from the financial authorities clarified the decision, emphasizing that granting universities this exception would be unjust to other businesses. Moreover, permitting such accounts for all corporations would heighten the risk of money laundering substantially.
Additionally, financial regulators and the Ministry of Education plan to advise universities against accepting such donations in the future. However, they may offer assistance to universities already in possession of such donations.
Depending on various factors, including the amount involved, a mechanism for converting these existing cryptocurrencies into cash could be devised. This presents a potential resolution for universities grappling with past cryptocurrency contributions.
South Korea Bans Cryptocurrency Donations
South Korea has recently enacted a ban on cryptocurrency donations, closing the door for charities to accept digital currencies. This policy change has the potential to affect their fundraising endeavors significantly, despite the rising popularity of Bitcoin (BTC) and other digital assets within the country.
