Bitcoin, Crypto currency, Blockchain

California: ban on crypto donations

88a16e97c8e4db1b863daf6665b09bd9 - California: ban on crypto donations

California politicians may in the future accept no more donations in Form of crypto currencies. This has the Fair Political Practices Commission (FPPC), a Commission to ensure a fair political process, on 20. September decided. Problematic campaign donations in Bitcoin & co., as a trace, in the money is hardly at risk possible and at the same time the transparency of political campaigns.

Only a year ago BTC was reported by the ECHO that the election campaign in the USA, are becoming increasingly popular to donate. Since the 20. September it, at least for California politicians, Bitcoin & co. to complicate the detection of violations of election campaign financing. As the Crypto Daily Gazette reported, has banned the FPPC, any crypto-donations to California politicians.

Cash or in-kind benefits?

The FCPP is regulated by a independent body, the “campaign Finance, conflicts of interest, lobbying and governmental ethics”.In a staff report, the Commission was informed well about the fact that donations in crypto-currencies is hardly to be recovered must be followed and accordingly, any violations of the campaign Finance would not be revealed. Therefore, the FPPC should develop a regulation of cryptographic donations. This is consistent with the current rules for campaign contributions. Any contribution over $ 100 may thus be carried out only by check or other traceable method. Both Cash donations as well as cash expenses over $ 100 are not allowed. Accordingly it is said in the staff report:

“Given the restrictions on cash contributions and expenditures … the question arises as to the permissible use of crypto-currencies such as Bitcoin for campaign contributions and expenditures. While crypto some of the characteristics of cash currencies are a relatively modern Form of currency and not of a governmental Agency issued it.“

In this sense, the Commission’s report gave several options for the regulation of the Hand. In addition to the complete prohibition of the staff proposed to report to treat crypto-currencies, such as cash or “in kind” to be understood. In addition, the Commission would have to decide whether the crypto donations in US dollars, exchanged must be or can be kept. At the same time, the report recommended, however, to Keep the crypto currencies to consider:

“The fact that committees maintain separate crypto-currency accounts, the rule speaks for a Bank account and would thwart any enforcement efforts seriously. Due to the nature of the transactions with crypto-currencies, it is also extremely difficult to identify a source of a particular contribution.“

In addition, the tracing through accounts that are not in California or even the United States would be more difficult in addition to considerably. In the end, the Commission opted for arguably the easiest, if most radical, solution. With a majority of 3 to 1 voted in favour of a complete ban on any crypto-donations to California politicians.

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