The Financial Services Commission (FSC) of South Korea has announced strict regulations for nonprofits regarding cryptocurrencies, effective June 2025, including mandatory audits.
New Requirements for Nonprofits
Under the new regulations, nonprofits and crypto exchanges will be required to undergo stringent customer checks starting June 2025. Nonprofits must provide at least five years of audited financial records and establish internal Donation Review Committees.
Impact on Operational Strategies
The immediate effect on nonprofits includes forced realignment of financial strategies due to the new compliance demands. Organizations looking to liquidate cryptocurrencies will face increased financial oversight, potentially limiting their operational flexibility.
Global Trends in Crypto Regulation
The FSC's measures mirror similar regulatory paths taken by countries such as Japan and Singapore, aiming for greater transparency and accountability in South Korea's developing crypto market.
The introduction of new regulations is expected to enhance market transparency and liquidity, fostering increased investor confidence in the South Korean crypto industry.
