Save The Children has recently announced to launch a Bitcoin Fund, allowing acceptance of Bitcoin, stablecoins, and other digital assets to speed up humanitarian aid. This innovation raises key compliance questions for Indian NGOs under the Foreign Contribution Regulation Act (FCRA), 2010.
Section 17 of the FCRA Act mandates routing all foreign contributions exclusively through a designated State Bank of India account at its New Delhi Main Branch. Cryptocurrencies, treated as Virtual Digital Assets (VDAs) under Indian tax laws, do not flow through this channel, risking violations of Donor Traceability and mandatory reporting. Chat at the OZG FCRA Helpdesk at 9811415831 or email at ask@fcra.in for step-by-step guidance on FCRA compliance.
NGOs accepting crypto face volatility risks of 15-20% price swings, forcing speculative timing that burdens budgeting and violates FCRA bans on mutual funds or speculative investments. Additional challenges include custody controls, real-time valuations, blockchain reconciliations for source disclosure, and non-cash inflow documentation to protect FCRA registration.
This initiative tests regulatory boundaries and may inspire a “humanitarian sandbox” for supervised cryptocurrency use in social finance. NGOs can leverage OZG's tech-enabled services for compliant innovation.
Register at ozgdigital.com for upcoming events on FCRA compliance navigation.
CONTACT:
✍️ Email: ask@fcra.in
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