Japan’s internal affairs and communications minister, Sanae Takaichi has allowed political donations in crypto. She unveiled this news during a press conference on October 8. Per the Political Funds Control law, politicians do not have to disclose the source of their funding. As such, this move means Japanese politicians can receive crypto donations without limits.
According to Takaichi,
Cryptographic assets do not fall under any of the above [regulations], and don’t limit donations,
She added that as crypto continues becoming widespread, Japan’s political parties will have to address taxonomy and rules. This is because crypto funding would limit the political activities of each party. As such, this would create a problem that each party and group will have to discuss.
While Takaichi’s statement means Japanese politicians can become crypto-rich without limitations, there is a catch. Japan recognizes the existence of crypto. However, it does not consider crypto coins as legal tender. As a result, this creates a problem for the politicians that will accept crypto for donations. This is because cashing out the coins would mean they have to disclose the source of their donations.
Japan’s Strict Stance on Exchanging Crypto
Japan’s FSA allowed market operators in the crypto space to trade even before they were fully compliant. However, the agency is quite strict when it comes to exchanges. The country allows free exchanges between the Japanese yen and crypto. However, completing an exchange means that the person holding the crypto must have a valid bank account and national ID.
According to a report, Japan’s FSA introduced sterner rules on crypto trading. Per the publication, the agency made this move following several high-profile hacks in the country that saw investors lose a lot of money. These include Mt. Gox, Coincheck, and Zaif.
Apart from regulating exchanges, FSA also tightened clampdowns on margin trading. Per the FSA, these new rules would let it monitor exchanges closely. In so doing, it would be in a position to protect consumers.
This news comes after a publication unveiled that Japan seeks to become the global leader in BTC adoption. To help expedite this process, the FSA joined hands with NIKKEI Inc., to host the FINSUM 2019 event in September this year. This event focused on FinTech, blockchain, future of finance, and crypto.
Speaking at the event, Anthony Pompliano, a renowned BTC bull and the co-founder of Morgan Creek Digital said,
Japan’s Financial Services Agency is a big proponent of Bitcoin and Lightning Network.
He added that,
They have fairly clear regulatory framework, they want to see Bitcoin/LN succeed, they specifically told me that they think open networks will win, and they are hoping to be a world leader in adopting both aspects of the tech.
Do you think Japan allowing political donations in crypto will have an impact on the crypto market? Let us know in the comments below.