Monetary authorities in South Korea are prohibiting universities from opening company accounts for coin transactions. That is ensuing of their incapacity to transform cryptocurrency donations supplied by sure crypto companies into money.
Native outlet Chosun Ilbo reported Monday that monetary authorities are involved that company accounts, not like particular person accounts with actual names hooked up, can be utilized for cash laundering extra simply as a result of lack of particular person verification.
The Korean Monetary Intelligence Unit (KoFIU) and the Ministry of Training are reportedly anticipated to uphold their place on prohibiting universities from opening company accounts for coin transactions.
South Korea Universities Caught with Crypto Donations, New Guidelines Deliberate
This determination comes after some universities requested to open company accounts for money conversion, following massive coin donations they acquired.
A senior official from the monetary authorities defined the choice, saying that permitting universities an exception could be unfair to different companies. Moreover, opening such accounts for all firms would create a big cash laundering threat.
Additional, monetary authorities and the Ministry of Training intend to advise universities to keep away from accepting such donations sooner or later. Nevertheless, they could supply a lifeline for universities already holding such donations.
Relying on the quantity and different components, a system for changing these present cash into money could be established. This implies a doable answer for universities scuffling with beforehand acquired cryptocurrency donations.
South Korea Bans Cryptocurrency Donations
South Korea not too long ago slammed the door on cryptocurrency donations. This new coverage prohibits charities from accepting digital currencies, doubtlessly impacting their fundraising efforts.
The choice comes regardless of the surging recognition of Bitcoin (BTC) and different digital currencies within the nation.