In a clear example of tech evolving faster than the law can adapt, a Japanese minster has confirmed that crypto donations are now legal due to a classification loophole.
According to Reuters, on Tuesday, Sanae Takaichi, the internal affairs and communications minister of Japan, noted the newfound ‘legality’ of crypto donations. She specifically highlighted their use within elections, remarking that cryptocurrencies were not subject to the stringent political fund’s control law; a statute which affirms that all donations to individual politicians — whether it be stocks, bonds or fiat — must be publically reported.
Incredibly, cryptocurrencies, due to their current classification, do not fall into the categories above. In essence, neither the donor nor the candidate is required to reveal any crypto contributions.
Though at first glance, this seems like a reasonably positive step, upon further inspection, it’s just a major loophole in the legal system.
As mention, there are rigorous rules in place when it comes to political donations in Japan. The Political Fund’s Control Act (PFCA) specifically sets out a range of criteria for a political contribution that this cryptocurrency loophole effectively contravenes.
For example, according to The International Institute for Democracy and Electoral Assistance, Article 22-6 of the Political Funds Control Act, 1948 notes
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