In a surprising move, Japanese political crypto donations will no longer be limited to a particular amount. It means that Japanese politicians can now be funded with an unlimited amount of cryptocurrency funds without any oversight of relevant authorities.
With no disclosure requirements, the move is seen as a step towards opaque political funds and something that would promote corruption. Announced by the Communications and Internal Affairs Minister, Sanae Takaichi, the briefing will surely ignite a political storm. According to her, the country’s ‘Political Funds Control Law’ does not cover Japanese political crypto donations, and thus, politicians don’t have to disclose such funds.
The amount of crypto donations is also one concern she addressed by saying that Japanese law does not cover any limits regarding the amount. It was a typical pro-Japan scenario.
Parties to self-regulate Japanese political crypto donations
Her statements reflect that parties should take preventive measures by themselves to limit such contributions and promote transparency. That will be a step forward in Japan’s political circles. To regulate the activities of each politician, such funds must be controlled.
The political abuse of such rules has been slammed by critics who argue that regulations are seldom imposed in intra-party scenarios. Money laundering and limitless political influence are some of its ramifications. The only respite is that the Japanese crypto business is heavily regulated with sufficient checks. Premier government agencies like the Financial Services Authority, along with other government arms, control it tightly.
Japan has pioneered open-society initiatives that promote transparency and zero-crime society. So, such new rules will surely be greeted with some political sense and pose no significant threat. The role of crypto donations in future elections remains to be seen since it has become a preferred donation method.
What is sure is that it will further increase the penetration of cryptocurrencies in Japanese society. It will also set an example for the world on how cryptocurrencies will be used in political arenas.