Since the launch of cryptocurrencies, many political campaigns have been funded through cryptocurrencies, considering them as donations or the financial support of people favoring their favorite candidates. Back in the day, California imposed a strict ban on campaign donations that commenced using cryptocurrencies; the ban was extended from a few months to four years.
Crypto Donations for Political Campaigns
Now when this state has terminated the ban, political campaigns will be able to accept donations in cryptocurrencies. This means that people will be able to financially support their favorite campaigns within California while retaining their privacy and following in on the act through complete anonymity.
The fair political practices Commission of California unanimously agreed to lift the four-year-long ban on crypto donations, but while doing so, new rules and regulations were drafted which would allow campaigns to eventually accept crypto funds. These new regulations are going to take effect in the next 60 days or so.
While interrogating the officials involved in the matter, it was found that crypto donations are a relatively newer industry, and things need to be adjusted and properly dealt with as the industry progresses. The allowing of crypto contributions will make sure that people are able to chip in their financial support to their favorite political campaigns without having to smear a dark spot on their privacy. It was also said that these regulations that are now being drafted to allow crypto donations to become a thing would not allow anyone to violate the law in any capacity.
Use of Third-Party Payment Processor
Within the regulations, it was also imprinted that all donations would be facilitated by a third-party payment processor, which needs to be based in the United States and effectively registered with the financial crimes enforcement network of the United states treasury.
On top of everything else, it must not exceed the original contribution limits, and it is paramount to verify the identity of the contributor before they make the donation. After the donation has been submitted in a relative cryptocurrency, it needs to be transferred into the united states dollar and, from there on, transferred right into the bank account of whatever campaign this donation was directed towards.
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