Challenges Faced by South Korean Universities in Cashing out Cryptocurrency Donations
South Korean universities are currently struggling to convert cryptocurrency donations into Korean won due to the strict requirements for user identification on crypto exchanges. Many educational institutions have requested authorities to help them open bank accounts for this purpose, but banks are hesitant to work with organizations dealing with crypto assets.
In South Korea, individuals need to have a real-name account to sell or convert cryptocurrencies, making it difficult for universities to cash out large donations. The country’s financial intelligence unit and the Ministry of Education are concerned about potential money laundering risks associated with corporate accounts used for crypto transactions.
As a result, universities are advised to avoid accepting cryptocurrency donations to mitigate these risks, leaving them in a tough spot if they already possess digital assets. Authorities are now considering implementing a special system to facilitate the safe conversion of received crypto donations.
While South Korean politicians have promised benefits for local crypto investors, financial regulators are looking to tighten rules for listing new altcoins on centralized exchanges. This regulatory environment may further complicate the situation for organizations dealing with digital assets in the country.
