Lawmaker plans to accept political donations in cryptocurrency

SEOUL, 30 Dec. (Yonhap) – A ruling party MP is considering accepting political donations of cryptocurrency, his office said Thursday, amid growing interest in virtual assets in the country.

Ruling Democratic Party Representative Lee Kwang-jae is trying to secure campaign contributions in virtual currencies and issue non-fungible tokens (NFTs) as received for such donations starting in mid-January.

If that comes to pass, Lee would be the first lawmaker in South Korea to accept virtual assets for campaign finance.

“We are currently reviewing the selection of local (virtual asset) wallet providers,” said an official in Lee’s office. “We will be revealing our portfolio address on our blog, Facebook page and YouTube channel in early January.”

Since this is an experimental project, Lee’s office said it initially plans to receive 10 million won (US $ 8,450) in virtual asset donations, with a limit of 1 million. of won fixed for each donor.

His office is looking to take Bitcoin and Ethereum, the two largest cryptocurrencies by market cap, and a few local virtual currencies.

Donated virtual assets will be converted to cash at a local cryptocurrency exchange and will be used in accordance with political finance regulations.

Due to its high volatility, Lee’s office said the actual value of donated cryptocurrency might be different when converted to cash, meaning donors may see different tax deduction amounts from their. expectations when making the year-end tax settlement for their donations.