👉👉👉 South Korea Universities Face Banking Hurdles in Converting Crypto Donations to Cash
South Korea Prohibits Universities from Converting Crypto Donations to Cash
- South Korean financial authorities are barring universities from opening corporate accounts for #cryptocurrency transactions, preventing them from converting cryptocurrency donations into cash.
Concerns Over Money Laundering
- The local outlet Chosun Ilbo reported that financial authorities are worried that corporate accounts, which lack the individual verification associated with personal accounts, could facilitate money laundering. The Korean Financial Intelligence Unit (KoFIU) and the Ministry of Education are expected to maintain their stance against allowing universities to open such accounts.
Universities Struggle with Crypto Donations
- This prohibition follows requests from some universities seeking to open corporate accounts to convert substantial cryptocurrency donations they received into cash. A senior official explained that granting universities an exception would be unfair to other businesses and could significantly increase the risk of money laundering if extended to all corporations.
Future Guidelines and Potential Solutions
- Financial authorities, alongside the Ministry of Education, plan to advise universities against accepting cryptocurrency donations in the future. However, they may offer a solution for universities already holding such donations. Depending on the amount and other factors, a system might be established to convert these existing cryptocurrencies into cash, providing some relief to institutions struggling with previous donations.
Ban on Cryptocurrency Donations
- South Korea has recently banned cryptocurrency donations, affecting charities and their fundraising capabilities. This decision comes despite the growing popularity of Bitcoin ($BTC ) and other digital currencies in the country, underscoring the government's cautious approach to cryptocurrency-related activities.
Source - cryptonews.com
