Japanese regulators found cryptocurrency donations legal

Today in Japan, the Minister of Internal Affairs and Communications Sanae Takaichi announced that donations in cryptocurrency are recognized as legal in the country of the rising sun, according to Reuters.

The question was raised in connection with doubts about the legality of the cryptocurrencies participation in the process of political elections. The Minister emphasized that when using cryptocurrencies during the elections, they do not fall under the strict law on the control of political funds. According to this law, any donations to politicians must be made publicly – information about them is published in open sources.

Cryptocurrencies, due to their current classification, do not fall into the category of public donations. In fact, neither the donor nor the candidate is required to disclose contributions in electronic money.

Japan’s law regarding the financing of political organizations is quite strict: it prohibits making anonymous donations, and without being a member of any party, a person cannot make contributions in excess of 1.5 million yen per year. Moreover, donations from trade unions and organizations to certain political figures are prohibited in Japan.

The use of cryptocurrency reduces to the above provisions. With this type of money, the donor, whether it is an organization or an individual, can remain anonymous and give as much as he or she sees fit without any restrictions.

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On the one hand, the situation creates opportunities for abuse, contributing to undermining the political system of Japan. However, Tomoaki Iva, a law professor at Japanese University, considers it a prime example of how progress is ahead of inert legislation:

“The current law does not keep up with the times.” – said Professor Tomoaki Iva.

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