Last week Korea’s Financial Services Commission held a meeting of its Virtual Assets Committee and decided to formulate rules to allow non profits to receive cryptocurrency donations. New guidance was announced for exchanges that receive tokens as payments. It also tightened the procedures around the new token listing, so-called zombie coins and memecoins. The Virtual Assets Committee includes representation of the Korea Federation of Banks and the Digital Asset Exchange Association (DAXA).
For non profits, the processing of crypto donations should be outsourced to organizations with at least five years of experience. Any received cryptocurrencies must be traded on at least three Korean crypto exchanges and the non profit must implement a policy to cash out all tokens upon receipt. In order to comply with anti money laundering rules, donations can only be made directly via a cryptocurrency exchange.
In addition to donation guidelines, the new rules address cryptocurrency exchanges, specifically regarding the sale of cryptocurrencies for the exchange’s own account where it received the tokens as fees. The regulator’s aim is to prevent conflicts of interest. Sales are only allowed where the purpose is to cover the operating expenses of the exchange. An exchange cannot sell the tokens on its own platform and must use a third party instead. To avoid impacting market prices, exchanges can only sell popular tokens that rank among the top 20 on at least five Korean exchanges. Plus, there are daily restrictions on the volume of tokens that an exchange can sell.
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