California Lifts Ban on Cryptocurrency Donations
This week, the California election campaign regulator lifted a multi-year ban on donations in cryptocurrency.
Companies will soon be able to accept cryptocurrencies through a payment processor, according to a regulation approved by the State Commission on Fair Political Practice.
California companies will soon be able to accept donations in cryptocurrency after the state's campaign regulator lifted a four-year ban on donations in cryptocurrency on Thursday.
The California Fair Political Practices Commission voted unanimously to lift the state's ban on donations in cryptocurrency and adopt new rules for accepting funds. The new regulation will come into force within the next 60 days.
"This is a new and ever-changing area," David Bainbridge, general counsel of the Legal Department, said at the commission's July meeting.
"We may have to adjust this as the industry develops, it's a fairly new industry," Bainbridge added. This will not be an easy way to break the law."
Donations must be made by a third-party payment system based in the United States and registered in the Financial Crimes Enforcement Network of the Ministry of Finance, and must not exceed donation limits. In addition, the identity of the donor must be confirmed, and the donation must be immediately converted into US dollars and transferred to the company's bank account.
The commission banned cryptocurrency donations in 2018, citing concerns that cryptocurrency could be used to circumvent contribution restrictions and rules prohibiting accepting cash from foreign donors, according to the commission's memorandum. California was one of nine states that banned cryptocurrency donations, while a dozen states explicitly allowed some forms of cryptocurrency donations.
https://coin-signal.com/cryptonews/california-lifts-ban-on-cryptocurrency-donations/
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