Starting June 2025, South Korea’s Financial Services Commission (FSC) has implemented rigorous crypto regulations specifically for nonprofits. The new rules mandate extensive financial audits and compliance checks to bolster market integrity and attract institutional investors. The FSC expects nonprofits to provide at least five years of audited financial records and form internal Donation Review Committees. Organizations interested in liquidating cryptocurrencies will face increased scrutiny, with a greater focus on financial transparency and accountability. While designed to curb money laundering risks, these regulations could limit the operational flexibility of smaller nonprofits, potentially hindering their ability to effectively leverage donated cryptocurrencies. South Korea’s regulatory approach echoes similar measures taken by nations like Japan and Singapore in establishing robust market frameworks. These steps aim to enhance transparency and accountability within the country’s developing cryptocurrency landscape. Similar regulation in established markets has traditionally boosted liquidity and market protection. As top-tier cryptocurrencies gain higher trading volumes and valuations, investor confidence is expected to grow, leading to increased stability in the regional crypto scene. Nonprofits must provide at least five years of audited financial history before receiving or selling virtual asset donations. All donations must be routed through verified Korean won exchange accounts, with verification responsibilities held by banks, exchanges, and the nonprofits themselves.