Politicians in Japan can now accept cryptocurrency donations to fund their campaign activities, according to a report by news agency Yomiuri Shimbun. However, it is still illegal to donate in other forms such as the Japanese yen, stocks, bonds and other securities.
According to the Japanese law, political parties are required to publicly report donations made in the form of traditional assets. Due to this technicality, cryptocurrencies are not considered among the standard avenues forbidden from political campaigns. As a result, they can be accepted as legal political donations and politicians are not required to report the source of funding.
With crypto donations, politicians in Japan are not obligated to record and report every transaction to the government for clearance, no matter how big or small. Politicians can therefore avoid the tedious task of recording every donation, effectively saving them the cost of hiring personnel to perform the work.
Cryptocurrency donations bring more attention to the need to upgrade existing injunctions to keep pace with rapid changes in technology. There has been criticism on social media that the Japanese Financial Services Agency (FSA) has not done enough to regulate cryptocurrency in Japan, and that transactions of the asset must be reported to the government.
The political donation law in Japan effectively serves as an example of the anonymity and privacy of cryptocurrencies. The fact that innovations outpace centralized regulations necessitates the upgrading of existing laws to keep up with new technologies such as cryptocurrency and blockchain.
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