Japan deems cryptocurrency donations legal; cites lack of mention under PFC law

Japanese Minister of Internal Affairs and Communications, Sanae Takaichi, told a recent press conference that crypto-donations are “legal” in the country. According to reports, the Minister cited the Political Funds Control Law and noted that donations in virtual assets were not subject to this law.

Takaichi added that under this law, donations in “monetary money” include money and securities. She added,

“Cryptographic assets do not fall under any of the above, and don’t limit donations.”

According to the cabinet member, donations in crypto-assets to individual politicians are deemed as “legal” and is not included in the Political Funds Report. In response to the nation’s stance on laws and regulations around crypto, Takaichi said that it will have “to be discussed by each party and each group” as “it will limit the political activities of politicians.”

Japan was among the handful of nations to provide legal status to cryptocurrencies in 2017, bringing crypto-exchanges under the Anti-Money Laundering [AML] and Know-your-customer [KYC] laws. Despite offering them a legal status, the need for regulations to maintain transparency, especially when donations to political parties in crypto are legal and undeclared, pose a significant hurdle.

While confusion among the masses lingers over regulations, crypto-user figures in Japan continue to be high, with Japan’s Financial Services Agency [FSA] regulating crypto, making it a taxable asset to be reported by individuals.