A lawmaker from South Korea’s ruling Democratic Party has called for donations in cryptocurrencies. Lee Kwang-Jae says this is part of his efforts to raise awareness about digital assets and NFTs in South Korea.
According to The Korean Times, the donated crypto will be converted into Korean won. The amount would then be deposited into the party’s account. The report states that receipts for such donations will be acknowledged in the form of non-fungible tokens (NFTs). It will be sent to the respective donor’s email address.
The Democratic Party is reviewing the selection of digital wallet providers for the same. It said they will disclose their wallet address on the party’s blog, Facebook page and YouTube channel in early January. And since this is a pilot project and acceptance of crypto donations is yet to be institutionalized, the party can only receive a maximum of $8,420. Supporters can donate cryptocurrencies worth not more than $842. Being mindful of the high volatility, the party said the actual value of the donated cryptocurrency could be different when it is converted into cash. This means donors can get tax deductions different from their expectations.
Kwang-jae regrets that politicians in South Korea have shied away from digital assets. He said the world is embracing blockchain technologies used for cryptocurrencies, NFTs and now, the metaverse as well. The lawmaker said technologies are advancing rapidly.
He feels 2022 is appropriate to undertake innovative experiments. Kwang-jae believes this will change fellow politicians’ understanding of future technologies. He says it will open a whole new world of digital currencies and NFTs.
However, financial regulators are not very happy about the idea of crypto donations. South Korea has some of the world’s toughest crypto regulations. It restricts cryptocurrency trading to real-name bank accounts. This means a trader must create a real-name account with the same bank as their digital asset dealer in order to deposit or withdraw funds.