Japan now makes it legal for politicians to use cryptocurrency donations to fund election campaigns in the country.
Yomiuri Shimbun a popular media reported on Saturday that crypto donations are legal although it is illegal to accept other forms of donations.
Individual Donations Illegal for Elections
Japan’s elections require a tedious process of capital inflow required for marketing, renting office spaces as well as organizing for campaigns.
On the other hand, accepting individual donation funds are illegal in Japan under the administrative funding control law.
‘On the other hand, fiat currency Japanese yen, stocks, bonds, or any other marketable securities suffered a significant setback as they were called out as forbidden modes of donations.’
Crypto Donations for Election Campaigns
Cryptocurrencies can open up possibilities for election campaigns in Japan. Accepting cryptocurrency donations are reportedly now legal in the country.
Current regulations stated that the individuals contributing to political donations in the form of native currencies or standard instruments must publicly be reported by the individual.
Technicalities classifying this asset class manage to escape the radar of the regulatory ordinance for cryptos.
Thus, according to Japan’s Ministry of Internal Affairs and Communications, ‘individual politicians can freely accept cryptocurrency campaign funding, without having to notify the amount or source of funding.’