South Korea excludes cryptocurrency in recently updated Donation Act
In a significant legislative update, South Korea has revised its Donation Act for the first time since 2006, broadening the scope of acceptable donation assets but notably excluding cryptocurrencies like Bitcoin.
Expanded donation options embrace technology
The Ministry of the Interior and Safety, which is overseeing the amendments to the Enforcement Decree of the Act on Collection and Use of Donations, has introduced several modern payment methods into the donation framework.
Starting in July, South Koreans will be able to donate using department store gift vouchers, listed stocks, cash points from major platforms such as Naver, and supermarket vouchers. Additionally, donations can now be made with local government-issued, Korean won-pegged stablecoins and blockchain-powered e-gift vouchers.
Cryptocurrencies absent from donation methods
Despite South Korea’s high rate of cryptocurrency adoption and trading, the government has decided to exclude digital currencies like Bitcoin from the list of approved donation assets.
The Ministry of the Interior and Safety did not provide specific reasons for this exclusion, sparking discussions and speculation among stakeholders and citizens.
This decision is seen as a significant omission given the popularity and increasing mainstream acceptance of cryptocurrencies in the country.
Technological enhancements to facilitate giving
The amendments are not just about expanding the types of donation assets; they also aim to modernize how donations are made.
Advanced technologies such as automatic response systems (ARS) will be utilized to facilitate the donation process.
The government is also looking to introduce more online donation platforms and streamline processes to enhance accessibility and efficiency, reflecting a commitment to leveraging technology in supporting philanthropic activities.
Impact on the donation landscape
The exclusion of cryptocurrencies from approved donation assets raises questions about the potential impacts on charity drives and the broader acceptance of digital currencies in South Korea.
While the government has embraced certain technological innovations like blockchain-powered vouchers and stablecoins, the reluctance to include popular cryptocurrencies could influence future legislative developments in the digital currency space.
The update to the Donation Act reflects South Korea’s efforts to adapt to changing technologies and payment methods since the original legislation was enacted in 2006, a time before the widespread adoption of smartphones and modern digital payment systems.
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