South Korean universities are facing difficulties converting cryptocurrency donations into cash due to regulations imposed by the country's financial authorities. These regulations prohibit learning institutions from opening corporate accounts to handle virtual assets, citing concerns about money laundering. The Financial Services Commission's intelligence unit and South Korea's Education Ministry support maintaining this ban.
According to a report from Chosun Daily, Korean financial authorities have instructed banks not to provide virtual asset exchange accounts to corporations and institutions. This decision is based on the belief that corporate entities pose a higher risk of money laundering if granted this privilege.
Despite receiving significant cryptocurrency donations, some universities have requested exemptions from these regulations. However, an unnamed Korean official argues that institutions, including universities, should not receive preferential treatment. The official asserts that allowing this only for universities would create fairness issues with other corporations, while permitting it for all corporations would increase the risk of money laundering.
The report also suggests that the ease of establishing and dissolving corporations may be a factor in authorities' reluctance to lift the ban.
Meanwhile, there are indications that Korean authorities may consider a one-time exception to allow universities to convert already received donations into cash. However, authorities also plan to advise universities against accepting such donations in the future.
What are your thoughts on this situation? Let us know in the comments section below.