South Korean Universities Face Challenges Converting Crypto Donations to Cash
South Korean universities are encountering difficulties in converting cryptocurrency donations into cash due to financial regulations that prevent them from opening corporate accounts for coin transactions. The authorities are concerned about the potential for money laundering through corporate accounts, which lack individual verification unlike accounts with real names attached. The Korean Financial Intelligence Unit and the Ministry of Education are expected to maintain their stance on prohibiting universities from opening corporate accounts for coin transactions.
This decision was prompted by universities’ requests to open corporate accounts for cash conversion, following significant coin donations they had received. Financial authorities argue that granting universities an exception would be unfair to other businesses, and that allowing such accounts for all corporations would increase the risk of money laundering.
Financial authorities and the Ministry of Education plan to advise universities against accepting cryptocurrency donations in the future. However, they may offer a solution for universities that already hold such donations by establishing a system to convert the existing coins into cash, depending on the amount and other factors.
In addition to the challenges faced by universities, South Korea recently implemented a policy that prohibits charities from accepting digital currencies as donations, potentially affecting their fundraising efforts. This decision was made despite the growing popularity of Bitcoin and other digital currencies in the country.