World Vision Becomes First Nonprofit to Trade Cryptocurrency in South Korea Following Regulatory Changes
World Vision Korea has made history by becoming the first nonprofit organization to trade cryptocurrency in South Korea, following the country’s recent lifting of a ban on such activities. This significant milestone comes after the Financial Services Commission (FSC) updated regulatory frameworks to facilitate cryptocurrency trading by nonprofits and virtual asset exchanges.
The Historic Trade
On June 1, World Vision Korea sold 0.55 Ether (ETH), valued at approximately 1.98 million won (or $1,436), through South Korea’s leading cryptocurrency exchange, Upbit. This Ether was donated in March during a campaign encouraging Upbit users to contribute crypto to support underprivileged children unable to afford essential school supplies such as uniforms and bags. The Ether was held by Myung-hwan, the chairman of World Vision Korea.
Regulatory Changes
The FSC announced these updated regulations during a meeting held on May 20, which signifies a notable shift in the South Korean governmental stance towards cryptocurrencies. Under the new rules, nonprofits now have the authority to sell cryptocurrencies received through donations, and exchanges can liquidate user fees paid in crypto, provided they adhere to rigorous compliance standards, including the use of real-name accounts and alignment with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
To qualify for trading in cryptocurrencies, nonprofits need to demonstrate at least five years of audited financial history. Moreover, exchanges are allowed to sell only to cover operational costs, subject to daily trading limits.
Outlook for Public Companies
Later this year, the FSC plans to extend these trading permissions to publicly listed companies and entities classified as professional investors. This move is anticipated to further stimulate growth in South Korea’s burgeoning cryptocurrency market, which is already home to an impressive number of crypto investors. Reports indicate that over 16 million individuals—approximately one-third of the South Korean population—hold cryptocurrency accounts.
Broader Context
Cryptocurrency trading gained tremendous popularity in South Korea, particularly during a rush in 2017, which led to anonymous accounts being used by businesses, minors, and foreigners. In response to this surge and related issues, financial regulatory bodies mandated that crypto exchanges collaborate with local banks and conduct transactions only through verified real-name accounts.
This new development is significant not only for World Vision Korea but also for the broader fundraising landscape, as it opens up new avenues for nonprofits to finance their missions and support vulnerable populations. It is within this evolving regulatory framework that crypto activity is expected to flourish, despite recent market downturns that saw trading volumes on Upbit—a major player in the industry—drop by 34% in early 2024. World Vision Korea’s initiative marks a pivotal moment in the intersection of charitable activities and cryptocurrency, promising a new chapter for fundraising and community support endeavors in South Korea.
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