A revised contribution rule in South Korea will not apply to cryptocurrencies, such as Bitcoin, according to a May 5 announcement from government officials.

The Ministry of the Interior and Safety stated that it wished to "expand the scope" of donations, but it has chosen not to permit individuals to provide cryptocurrency, according to Kyunghang Shinmun.

Plans for Donations: Not Include Crypto

The Act on Collection and Use of Donations Enforcement Decree will undergo revisions by the ministry.

Citizens will be able to contribute a variety of non-cash alternatives to charitable causes thanks to these amendments.

These include listed equities, securities, department store gift cards, supermarket vouchers, and loyalty points from tech giants like Naver.

The ministry also intends to allow citizens to donate blockchain-powered e-gift vouchers and local government-issued stablecoins tied to KRW.

The scope of donation platforms has also been broadened in the plans, with more online donation options set to be green-lighted.

Citizens will also be able to make use of automatic response systems (ARS)-related technology when they want to give to charities.

Ministry officials want lawmakers to approve the legal amendments in time for a July rollout.

The ministry did not give reasons for its decision not to allow citizens to donate cryptoassets, despite the enormous popularity of BTC and other tokens in the country.

Charities to Suffer?

The news will come as a blow not only to crypto enthusiasts, but also to South Korean charities.

In recent years, charities have tried to launch crypto-powered donation drives. But they have had to contend with legal obstacles.

South Korean law does not allow for charities to accept crypto donations. So past campaigns have relied almost entirely on the aid of domestic exchanges.

In a January 2024 article for Bokji Times, Jang Yoon-ju, a researcher for The Beautiful Foundation – one of South Korea’s biggest charities – documented the crypto-related challenges charities face in the nation.

She claimed that potential donors had “made inquiries about cryptocurrency donations.” But, Jang said, such questions were often “difficult to answer.”

Exchanges Play Key Role

Jang noted that various attempts to launch crypto-powered donation platforms had failed in the past, with notable drives in 2014 and 2018 eventually coming to nothing.

She added that donations made using crypto began “in earnest” in 2020, when four large domestic charitable organizations started encouraging the public to donate their tokens.

But in each case, charities have had to team up with crypto exchanges that convert coins to cash, which they they pass on to the organizations.

Rising Popularity of Crypto Donations in South Korea?

The researcher added that crypto donations are becoming increasingly popular in South Korea, with many seeking to donate their coins to overseas charities.

Jang explained that South Koreans had donated a total of BTC 14 to charities involved in providing aid to victims of the 2023 Turkey–Syria earthquakes.

The citizens used a site run by Dunamu, the company that created the popular Upbit exchange in South Korea, to make their donations.

She added that 902 South Koreans gave $118,000 worth of "digital assets" to organisations that support refugees fleeing the conflict in Ukraine last year.

Additionally, the Ukrainian government has established direct cryptocurrency donation channels for foreign contributors.

Russian authorities accused a man of "high treason" last year after he allegedly provided cryptocurrency to the armed forces of Ukraine.