Financial authorities in South Korea are prohibiting universities from opening corporate accounts for coin transactions. This results in the inability to convert cryptocurrency donations provided by some cryptocurrency companies into cash.
Local outlet Chosun Ilbo reported Monday that financial authorities are concerned that corporate accounts, unlike individual accounts with real names attached, could more easily be used for money laundering due to the lack of individual verification.
The Korea Financial Intelligence Unit (KoFIU) and the Ministry of Education are expected to maintain their stance on banning universities from opening corporate accounts for coin transactions.
Universities in South Korea are stuck with cryptocurrency donations
The decision comes after some universities requested that corporate accounts be opened to convert cash in connection with donations received in the form of virtual assets.
A senior financial authority official explained the decision, saying that allowing universities an exception would be unfair to other companies. Moreover, opening such accounts to all corporations would create a significant risk of money laundering.
In addition, financial authorities and the Ministry of Education intend to advise universities to avoid accepting such donations in the future. However, they may come to the rescue of universities that already have such donations.
Depending on the amount and other factors, a system may be established to convert existing coins into cash. This suggests a possible solution for universities struggling with previously received cryptocurrency donations.
South Korea bans cryptocurrency donations
South Korea recently slammed the door on cryptocurrency donations. This new policy prohibits charitable organizations from accepting digital currencies, which could affect their fundraising efforts. The decision was made despite the growing popularity of Bitcoin (BTC) and other digital currencies in the country.
