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>>South Korean universities encounter challenges in converting cryptocurrency donations to cash.

South Korean universities encounter challenges in converting cryptocurrency donations to cash.

crypthub

1/24/2025, 11:47:46 AM

Prohibiting Corporate Accounts for Cryptocurrency Transactions in South Korea

Financial authorities in South Korea have taken a stringent stance by prohibiting universities from establishing corporate accounts dedicated to cryptocurrency transactions. This move significantly restricts their ability to convert donations received in cryptocurrency into cash, as reported by Chosun Ilbo on Monday.

Concerns Over Money Laundering and System Integrity

The Korean Financial Intelligence Unit (KoFIU) and the Ministry of Education are maintaining their policy regarding corporate account restrictions for coin transactions. Their primary concern is the potential for money laundering through corporate accounts, which often lack individual verification processes. A senior official from the financial authorities underscored the inequity of granting exceptions to universities, asserting that it would undermine the integrity of the system for all businesses.

Advisories and Potential Solutions for Universities

While advising universities to avoid accepting cryptocurrency donations moving forward, authorities also acknowledge the complex situation some institutions find themselves in regarding existing donations. They are exploring options to facilitate the conversion of these cryptocurrencies into cash, considering factors such as donation amounts. South Korea's recent policy has significantly hindered charity fundraising via digital currencies despite the popularity of cryptocurrencies like Bitcoin (BTC) in the country.