The South Korean Financial Services Commission (FSC) has announced new regulations that will allow non-profit organizations to sell cryptocurrency obtained through donations starting from June 2025. Additionally, cryptocurrency exchanges will be permitted to liquidate user fees paid in crypto assets. This move aims to provide more flexibility for non-profits to manage their cryptocurrency holdings and generate revenue from donated assets. The FSC also emphasized the importance of strengthening Know Your Customer (KYC) reviews and Anti-Money Laundering (AML) oversight for exchanges and banks involved in crypto transactions. The new regulations are part of South Korea's ongoing efforts to create a more favorable environment for the cryptocurrency industry while ensuring compliance with financial regulations. The FSC's decision to allow exchanges to liquidate user fees in crypto assets could help reduce the administrative burden on users and exchanges. However, the FSC has also stressed the need for tighter controls to prevent illicit activities, such as money laundering and terrorism financing, through the use of cryptocurrencies. This includes enhancing the KYC and AML processes for both exchanges and banks. Overall, the new regulations are expected to provide more opportunities for non-profits to utilize cryptocurrency donations effectively while promoting a safer and more transparent cryptocurrency market in South Korea.
