Prohibition of Corporate Accounts for Coin Transactions
Financial authorities in South Korea have taken a strict stance on universities opening corporate accounts for coin transactions to prevent money laundering risks. According to Chosun Ilbo, this limitation is hindering the conversion of cryptocurrency donations provided by certain companies into cash. The Korean Financial Intelligence Unit (KoFIU) and the Ministry of Education are set to maintain the restriction on universities from engaging in such transactions.
- The concern arises from the potential misuse of corporate accounts, which lack individual verification compared to personal accounts.
- Authorities believe that permitting universities this privilege would create an unfair advantage and heighten money laundering vulnerabilities.
Impact on University Donations and Fundraising
The decision to disallow corporate accounts for cash conversion follows requests from universities seeking to manage significant coin donations they had received. A senior official from the financial authorities defended the policy, citing the need for equal treatment among businesses. While advising universities against future cryptocurrency donations, a possibility remains for converting existing coins into cash under certain conditions.
“South Korea’s recent restriction on crypto donations extends beyond universities to charities, potentially affecting their fundraising activities. This move contrasts with the country’s growing interest in digital currencies.”
