Revised Donation Law in South Korea: A Closer Look
South Korea recently updated its Donation Act for the first time in 16 years, expanding the range of assets that can be donated to charities. Notably, cryptocurrencies like Bitcoin are not currently included in the list of acceptable donations, sparking debates among stakeholders and the general public due to the popularity of cryptocurrencies in the country.
Exploring the Changes in South Korea’s Donation Law
The Ministry of the Interior and Safety has proposed amendments to the Enforcement Decree of the Act on Collection and Use of Donations, allowing various new forms of donations, such as department store gift vouchers, listed stocks, cash points from major platforms like Naver, and supermarket vouchers. Additionally, local government-issued Korean won (KRW)-pegged stablecoins and blockchain-powered e-gift vouchers will be accepted.
- Ministry of the Interior and Safety introduces amendments to the Donation Act
- New forms of donations now accepted, including department store gift vouchers, stocks, cash points, and supermarket vouchers
- Local stablecoins and blockchain-powered e-gift vouchers also among acceptable donations
The exclusion of cryptocurrencies is notable given the high adoption and trading rates of digital assets in South Korea. The Ministry has not provided specific reasons for this decision, leading to speculation within the community. Despite this, other donation methods are set to improve, with plans to implement technologies like automatic response systems (ARS) for smoother donations starting in July. The amendments also aim to enhance online donation platforms for increased accessibility and efficiency, showcasing the government’s commitment to leveraging technology for charitable purposes.
Contrasting Global Trends in Crypto Donations
While South Korea’s stance differs from the global trend of accepting crypto donations, numerous organizations worldwide are embracing digital assets for philanthropic purposes. For example, the British Red Cross now accepts donations in over 70 cryptocurrencies. According to a report from The Giving Block, over $2 billion worth of cryptocurrency has been donated to charity, including popular assets like Bitcoin, Ethereum, and USDC.
- British Red Cross accepts donations in over 70 cryptocurrencies
- The Giving Block report shows over $2 billion in crypto donations to date
- Popular cryptocurrencies like Bitcoin, Ethereum, and USDC among top donated assets
Crypto donations have been impactful in various humanitarian efforts, with notable contributions from individuals like Vitalik Buterin, who donated $20 million in Shiba Inu (SHIB) tokens for Covid-19 relief. Similarly, Ukraine received significant crypto donations totaling over $70 million during the conflict with Russia, highlighting the efficacy of digital assets in providing aid during crises.
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