South Korea has announced new regulations that allow NGOs and cryptocurrency exchanges to legally sell cryptocurrencies starting in June 2023.
Conditions for Cryptocurrency Sales
According to Joseilbo, the sale opportunity will be offered on the condition that institutions establish internal audit mechanisms and strengthen anti-money laundering investigations.
New Rules for NGOs
The 4th Virtual Asset Committee meeting, chaired by FSC Vice Chair Kim So-young on May 1, finalized the draft sales guidelines for NGOs and exchanges. According to the guidelines, sales will begin only with external audit institutions operating for more than 5 years. Relevant organizations will also be required to establish a 'Donation Review Committee' to evaluate the appropriateness of donations and cash-out plans.
Measures Against Money Laundering
The guidelines emphasize preventing money laundering by requiring a verification of the purpose and source of transactions. A cross-customer verification mechanism between banks, exchanges, and institutions has been established, allowing donations and transfers only through local won exchanges.
These legislative changes aim to foster a robust donation culture and prevent financial crimes in the realm of virtual assets in South Korea.
