California campaigners could now be eligible for donations via Bitcoin (BTC), and other cryptocurrencies
The candidates for both local and state offices in the state can now breathe a sigh of relief as the state’s campaign regulator has lifted a four-year ban on crypto donations and contributions.
According to regulation, plans must be in place receive All such donations will be processed through a payment processor This will be filed with the United States Treasury Department as part of the Financial Crimes Enforcement Network.FinCEN).
The members of the California Fair Political Practices Commission unanimously voted to repeal the ban that was in effect for many years. They voted instead to create new regulations that will regulate crypto donations. The July meeting was attended by David Bainbridge, the general counsel for the legal division. He mentioned that this is an exciting era in the history of the western U.S.
Bainbridge also explained that it was important to Modify the regulation If the industry continues to develop, then this possibility may occur soon. In the meantime, he believes that current regulations will adequately address the inflows of crypto contributions and not violate any laws.
The Payment Processor allows you to receive crypto donations
To verify the identity of each donor, know-your-customer verification (KYC), will be performed by the payment processor. The payment processor must be able to retrieve personal data such as name and address in order for it to function optimally. AddressEmployer, occupation.
The regulation states that “A person may make, and a committee may solicit, a contribution of cryptocurrency as an in-kind contribution if the cryptocurrency is converted to dollars upon the making of the contribution”.
Contributions should not exceed the amount that has been set. Once a donation has been converted into U.S. Dollars, it should be transferred to the beneficiary campaign account within 24 hours. The current exchange rate at the time will determine how much conversion takes place.
Reporting crypto contributions will reflect the current fair market value of the cryptocurrency at time it was given to the payment processor.
The California commission regulation will eventually take effect in the next 60-days.