Regulation
South Korea revises donation law to exclude crypto donations
The three key points of the TDR regarding South Korea revise the donation law to exclude crypto donations:
- South Korea limits cryptocurrency donations and focuses on regulated digital assets.
- The country’s revised donation law reflects caution toward crypto.
- Crypto exclusions and tax delays are shaping South Korea’s digital asset policy.
South Korea’s Ministry of Public Administration has revised the “Donation Law”, which now excludes cryptocurrency as a legitimate means of donation. The move has attracted attention, particularly given the country’s evolving stance on digital assets. The amendment was reported on May 5 by Kyunghyang Shinmun, highlighting the country’s cautious approach to crypto donations and the need to regulate these transactions.
This change aligns with South Korea’s broader regulatory landscape, where the country aims to establish a legal framework for cryptocurrencies and related activities. The government is currently debating several crypto-related proposals under the Basic Law on Digital Assets, which is expected to address issues such as anonymous trading and money laundering.
South Korea has also taken steps to improve transparency in the digital asset space, requiring authorities to disclose their crypto holdings. The country’s existing crypto regulations include licensing requirements for virtual asset service providers, as well as strict reporting standards to prevent illegal activities.
The new donation law allows donations via KRW-linked stablecoins and blockchain-issued gift certificates, but excludes popular cryptocurrencies, impacting the philanthropic landscape in South Korea. This approach reflects a general apprehension towards digital assets, given their association with criminal activity. The government is also cautious about possible centralization, which could result from strict regulations favoring larger exchanges.
The ruling People Power Party has proposed a two-year delay in the implementation of crypto tax laws, aimed at establishing a tax base for digital assets. Overall, while South Korea remains open to donations of regulated digital assets, the government’s cautious approach highlights the complexities and risks. associated with cryptocurrency donations and their regulatory implications. To stay informed of all TDR research and news, subscribe to our daily newspaper Baked Newsletter.