'Bitcoin Political Donations' Allowed in the United States: Is It Possible in Korea as Well?

Can virtual assets (cryptocurrencies) such as Bitcoin be recognized as political donations? This topic surfaced publicly during the policy seminar 'Political Donations, Now as Digital Assets,' held at the National Assembly on the 13th. At the event, an official from the National Election Commission stated, "If immediate conversion to cash is possible as in the United States, political donations based on Bitcoin could also be permitted."

The core issue lies in the legal interpretation of whether virtual assets can be included in 'donations' under the current Political Funds Act. According to Articles 2, Paragraphs 4 and 5 of the Act, donations and contributions are defined as 'money, securities, or other valuables.' Some argue that, due to the lack of a clear definition of virtual assets, the National Election Commission suggested the ambiguous condition of 'immediate conversion upon receipt.'

A legal expert commented, "Given that definitions for Bitcoin remain unclear, and it doesn't exactly fit as 'money' or 'securities,' it may be difficult to outright prohibit it."

The United States already accepts virtual assets as political donations. In 2014, the U.S. Federal Election Commission (FEC) permitted Bitcoin as a means of political contributions. Through Advisory Opinion 2014-02, the FEC clarified its grounds by stating, "Bitcoin constitutes a 'thing of value' donated for the purpose of influencing federal elections."

U.S. political committees receive Bitcoin in a manner similar to in-kind contributions and evaluate its value based on the market price at the time of receipt for reporting donation details. Bitcoins may be kept in the committee's electronic wallet until conversion, and the committee is recommended to include the number of Bitcoins held and whether they have not yet been converted in the report as notes or memos. Such accounting standards are seen as mechanisms to prevent conflicts with regulations regarding donor limits or restrictions on sources.

Likewise, opinions have been raised that for Korea to accept Bitcoin political donations, a comprehensive legal framework—including eligibility criteria, reporting obligations, identity verification, and regulatory limits as in the United States—is necessary.

Ho-Sung Lee, the representative of Ichon Tax Accounting, advised, "If digital assets are utilized as political donations, it is necessary to prepare for practical issues such as asset value assessment, expense processing, and accounting standards," and added, "As political funds accounting standards are designed for existing cash flows, separate guidelines for virtual assets should be established."

Hyun-Soo Jin, the managing attorney at Decent Law Firm, noted, "The National Election Commission's interpretation is significant because it represents the first case of conditionally recognizing virtual assets as a form of political donation under the Political Funds Act," and diagnosed, "However, there are still many practical and legal challenges regarding real-name verification, donor limits, and accounting processes." He further added, "Due to the anonymous and volatile nature of virtual assets, institutionalization to ensure transparency and fairness in political funding must be implemented concurrently."