South Korea’s Crypto Plans: Non-Profits Get In on the Action – But Only Kinda

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Guess what? Starting in June, South Korean nonprofits and virtual asset exchanges can finally trade digital assets like it’s the wild west—but with a ton of rules. Yay, more regulations!

Nonprofits and Crypto? The Future is Now… Sort of.

Breaking news: South Korean nonprofit organizations and crypto exchanges will soon be allowed to trade digital assets without being all hush-hush about it. According to a new report (or as we like to call it, “Something That Took a While to Happen”), this move is going down in June, as part of a big, fancy plan to get things moving and shake up the virtual asset market—while also pretending to care about user protection. How thoughtful!

So, what’s going on here? Well, the Financial Services Commission (FSC) just wrapped up their fourth “Let’s Make Some Rules About Crypto” meeting in Seoul. And guess what? They’ve given both nonprofit organizations and exchanges the green light to trade crypto—but only under strict rules, so it doesn’t get totally out of hand. Phew, crisis averted!

According to the report, the FSC has finalized guidelines allowing nonprofits and exchanges to set up special crypto trading accounts. Yes, you heard that right—like a bank account, but for crypto. And for a good cause, too: to promote the most wholesome donation culture ever, while still preventing pesky things like money laundering. Who knew crypto could be so charitable?

Here’s the kicker: nonprofits must set up a special Donation Review Committee to keep an eye on donations, because, you know, no one wants money laundering to ruin the fun. Fancy that! The FSC has said this is all about creating a “sound donation culture.” Sounds like a blast, doesn’t it?

And don’t worry, the rules are crystal clear: donations will be limited to virtual assets traded on at least three major Korean exchanges (because three is the magic number, apparently). Oh, and as soon as these crypto donations come in, they have to be converted to cash right away. Because nothing says “charity” like liquidity!

Exchanges? They’re not left out. They too get to sell virtual assets—BUT only under “strict regulatory conditions” (because of course). They’ll only be allowed to sell to cover operational expenses, and only if they’re selling from the top 20 most valuable assets. So, sorry, no meme coins for you, nonprofit! The total daily sales cannot exceed 10% of the planned sales. Gotta keep it under control, folks.

Now, for some exciting news: exchanges must get board approval for every sale, disclose sales plans ahead of time, and even provide a full report afterward to tell everyone exactly how they spent the money. Accountability, anyone?

Lastly, the FSC wants you to know that they’ll roll out some “customer verification measures” for transactions between nonprofits and exchanges in May. Can’t have people sneaking around doing crypto shenanigans. And don’t get too comfortable, because later this year they’re planning a new phase that includes “real-name accounts” for corporations and professional investors. Who knew crypto could get so personal?

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2025-05-04 21:57