California authorities allowed politicians to accept donations in cryptocurrencies – Bits Media

California Fair Political Practices Commission votes unanimously to lift four-year ban on cryptocurrency donations.

According to the updated commission regulations (FPPC), donations in crypto assets должны проводиться через стороннего платежного оператора со штаб-квартирой в США, registered with the US Financial Crimes Enforcement Network(FinCEN). This operator must comply with the KYC procedure ("Know your client") to verify the identity of sponsors. Cryptocurrency donations 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 constantly changing industry. As it develops, we need to adjust the regulations. I'm sure, that at this time it properly regulates contributions in cryptocurrencies, while preventing possible violations of the law", —
said FPPC General Counsel David Bainbridge (David Bainbridge).

The Commission has banned cryptocurrency donations in 2018 year out of fear, that it is quite difficult to trace the origin of crypto assets. California was not the only US state, banning the use of digital assets to finance political campaigns. IN 2018 Michigan authorities also implemented a similar ban this year., despite , that many states, including Colorado, legalized collecting donations in bitcoins.

Louisiana lawmakers introduced a bill in March, allowing officials and political parties to accept cryptocurrencies, and then exchange them for regular money.