The California Fair Political Practices Commission voted unanimously to lift a four-year ban on accepting donations in cryptocurrencies.
Under the Commission’s Updated Regulations (FPPC), donations in cryptoassets must be made through a U.S.-headquartered third-party payment processor registered with the U.S. Financial Crime Enforcement Network (FinCEN). This operator must comply with the KYC (“Know Your Customer”) procedure to verify the identity of sponsors. Donations in cryptocurrencies must be immediately converted into US dollars and transferred to a bank account within two days. The new regulation will come into force within 60 days.
“Cryptocurrency is a new and ever-changing industry. As it develops, we need to adjust the regulations. I am sure that at the moment he properly regulates deposits in cryptocurrencies, while preventing possible violations of the law, ”
said David Bainbridge, General Counsel, FPPC Legal Department.
The Commission banned crypto donations in 2018 for fear that it would be difficult to trace the origin of crypto assets. California wasn’t the only US state to ban the use of digital assets to fund political campaigns. In 2018, the state of Michigan also implemented a similar ban, despite the fact that many states, including Colorado, legalized the collection of donations in bitcoins.
In March, Louisiana lawmakers introduced a bill allowing officials and political parties to accept cryptocurrencies and then exchange them for regular money.
Source: Bits
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