Problems with cashing out cryptocurrency donations at South Korean universities
Date: 2024-05-28 Author: Henry Casey Categories: IN WORLD
Difficulties in receiving donations in cryptocurrencies
Many universities in South Korea are faced with the problem of cashing out large donations in cryptocurrencies and have turned to the authorities for help in opening bank accounts. However, banks refuse to provide them with such accounts, creating additional difficulties.
Bank refusal and reasons
According to local media, domestic banks are refusing to open accounts for universities due to the requirement to provide real-name accounts on crypto exchanges. This complicates the process of converting cryptocurrencies into Korean won.
Authorities' concerns and recommendations
South Korea's financial intelligence agency and the Ministry of Education have expressed concern about the use of corporate accounts to cash out cryptocurrency without verifying personal details. Because of this, they discourage universities from accepting donations in cryptocurrencies, which creates difficulties for universities that already have digital assets.
Authorities are considering creating a special system for universities to cash out cryptocurrency donations to make it easier for them to receive funds.
Trends and prospects
While South Korean politicians are promising expanded incentives for local crypto investors, financial regulators are preparing to tighten rules for listing new altcoins on crypto exchanges. This indicates possible changes in the regulation of the country’s cryptocurrency space.
