South Korean institutions receiving cryptocurrency donations will be mandated to convert them into fiat currency under new regulations set to take effect in 2025. The move, aimed at ensuring transparency and preventing potential financial risks, will require organizations such as universities, charities, and public institutions to sell donated digital assets instead of holding them.
The decision follows growing concerns over the volatility of cryptocurrencies and their impact on institutional financial stability. Regulators argue that converting digital donations into cash will help mitigate risks and align with broader financial oversight policies. However, critics believe the move could deter crypto-based philanthropy and limit the flexibility of organizations that receive such contributions.
South Korea has been tightening its stance on cryptocurrency regulation, with increasing scrutiny on exchanges, taxation policies, and institutional involvement in digital assets. The new policy reflects the government’s broader effort to integrate crypto assets into the financial system while minimizing exposure to potential market fluctuations.
As the 2025 deadline approaches, institutions will need to adjust their policies on accepting and managing crypto donations. The impact on the volume of such contributions remains to be seen, but regulatory clarity is expected to shape the future of digital philanthropy in South Korea.
