South Korean universities are facing obstacles in converting cryptocurrency donations into cash due to strict regulations imposed by the country’s financial authorities. These regulations prohibit learning institutions from opening corporate accounts to handle virtual assets, citing concerns about money laundering. The Financial Services Commission’s intelligence unit and South Korea’s Education Ministry support maintaining this ban.
According to a report from Chosun Daily, Korean financial authorities have instructed banks not to provide virtual asset exchange accounts to corporations and institutions. This decision is based on the belief that allowing corporate entities to handle such assets poses a higher risk of money laundering.
Despite receiving significant cryptocurrency donations, some universities have sought exemptions from this regulation. However, an unnamed Korean official argues that institutions, including universities, should not receive special treatment.
The official stated, “Granting this privilege only to universities would raise fairness issues with other corporations, and extending it to all corporations would significantly increase the risk of money laundering.”
The report also suggests that the ease of establishing and dissolving corporations may be a factor in the authorities’ reluctance to lift the ban.
In the meantime, the report indicates that Korean authorities may consider a one-time exception to allow universities to convert their existing donations into cash. However, they also plan to advise universities against accepting cryptocurrency donations in the future.
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