The Canadian Electoral Body, Elections Canada, is mulling over the issue of political donations in the form of cryptocurrency donations.
According to a report dated Jan. 9, Elections Canada had published a draft document which contained details on the procedure of accepting cryptocurrency donations and also sought the views of various parties on the handling of aforementioned donations in light of the upcoming elections.
Canada, unlike some other countries, namely Taiwan and USA, which have banned the use of cryptocurrency donations to political parties, is said to be considering the idea of such donations ahead of the upcoming elections.
The document has classified cryptocurrency donations into two categories –
- Non-Monetary donations
- In-Kind donations
The document also states the need for classification is based on the fact that crypto assets exhibit characteristics of money and property.
These digital assets can be used to purchase goods but at the same time cannot be placed in banks without being traded in for fiat currencies, like most property assets.
The electoral agency has given until the 21st January to all parties concerned for their responses on this matter. Any concerns raised are going to be then addressed in an updated version of the document.
The agency has also included the necessity of reporting any donations which have been made using privacy coins that exceed the limit of $200. The political party concerned needs to submit the name as well as the address of the contributor.
In the case of anonymous donations, the maximum amount for contribution has been set at $20.
The agency has also made it clear that no person running for public office can use these donations for any kind of purchases directly. The implication of this is that political parties and entities need to liquidate the cryptocurrency donations and deposit them into bank accounts for use.
In case a party chooses to accept cryptocurrency donations, all the transaction history of their wallets would have to be submitted to the electoral body, pretty much the same way as they would with bank statements.
According to Elections Canada:-
“With interest in cryptocurrency on the rise, political entities have requested guidance on accepting contributions and conducting other transactions in bitcoin or altcoins.”