Crypto Conversions Blocked For South Korean Universities

Financial regulators in South Korea have enacted measures preventing universities when it comes to setting up corporate accounts for cryptocurrency transactions. Consequently, universities face challenges converting crypto donations by specific crypto firms into fiat currency.

According to local news source Chosun Ilbo, authorities express concerns that corporate accounts, unlike individual ones with verified identities, could be exploited for money laundering due to the absence of personal authentication.

Tension And Friction

The Korean Financial Intelligence Unit (KoFIU) and the Ministry of Education are anticipated to maintain their stance against universities establishing corporate accounts for crypto transactions. This decision follows various requests made by multiple local universities to establish corporate accounts for cash conversion subsequent to receiving substantial cryptocurrency donations.

A senior official representing the financial authorities rationalized the decision, stating that granting universities exceptions would be unjust to other businesses. Moreover, enabling such accounts for all corporations would pose significant money laundering risks.

A Silver Lining

Local regulators and the South Korean Ministry of Education plan to discourage universities regarding the acceptance of such donations going forward. Nevertheless, they may offer support to universities already in possession of such donations.

Depending on various factors including the amount involved, there is consideration for establishing a mechanism to convert existing crypto holdings into fiat currency. This indicates a potential remedy for universities grappling with previously received cryptocurrency donations.

South Korea has also recently implemented a ban on cryptocurrency donations, affecting charities and potentially impeding their fundraising endeavors. This move comes despite the growing popularity of Bitcoin (BTC) and other digital currencies in the country.