Japan Allows Cryptocurrency Donations

Japan crypto Sanae Takaichi

Japanese citizens can donate cryptocurrencies to political parties, according to Sanae Takaichi, the country’s internal affairs and communications minister. Interestingly such donations are not required to be disclosed under Japan’s Political Funds Control Law. Other forms of donation, such as cash and securities, must be disclosed under the law.

“Cryptographic assets do not fall under any of the above [regulations] and and don’t limit donations,” Takaichi told journalists at a press conference and added that political parties will have to discuss the terms and rules of handling and, possibly, disclosing such donations by themselves.

Cryptocurrencies are considered legal tender in Japan. Along with South Korea, Japan was reported to have powered the bull run in cryptocurrency markets towards the end of 2017 and the beginning of 2018. But a massive hack, involving theft of $530 million worth of NEM tokens, at a prominent crypto exchange put the brakes on crypto trading. Since then, the country’s Financial Services Agency (FSA) has cracked down on exchanges’ lax security practices and handling of investor protection protocols.