Cases of donating digital assets are increasing, but there are calls pointing to complex procedures as a hurdle.

Since the Financial Services Commission guidelines took effect in June last year, only 2 companies and 1 individual have donated digital assets to the Community Chest of Korea. The Community Chest of Korea is known to be the only organisation in the country with infrastructure that allows digital-asset donations.

Financial Services Commission guidelines say donating digital assets requires steps including a handover ceremony, internal review and staggered selling.

The same process was used for the recent donation of 16 bitcoin (BTC) from Dunamu, the operator of Upbit, to the Community Chest of Korea.

The two sides held a handover ceremony on Jan. 5. They signed a donation agreement to receive all 16 BTC after review by the Community Chest of Korea's deliberation committee, then sell it in tranches of 0.5 BTC per hour.

Only non-profit organisations that meet requirements can accept digital-asset donations. They must be large donation organisations subject to external audits and have been established for at least 5 years. They must also have internal control standards, including donor identity verification, expert review and linking to real-name accounts.

Banks review whether requirements are met when real-name account links are requested. Exchanges must check whether donation details match cash-out records when the assets are converted into cash.

A digital-asset industry official said it was like selling bitcoin given by Upbit on Upbit to receive cash, adding that there were many policy shortcomings in activating digital-asset donations.

Applying the same tax benefits as cash donations is an advantage. Donation receipts can also be issued. Individuals receive tax credits of up to 30 percent of the donation amount. Companies can treat up to 10 percent of income as deductible expenses under the general donation standard.