Sanae Takaichi, the internal affairs and communications minister of Japan, has recently affirmed that politicians can receive donations made with cryptocurrencies. According to him, crypto donations do not necessarily need to be disclosed via the Political Funds Control Law, as it happens with both securities and cash.
This means that crypto donations do not really have limits, in his view. This happens because they do not fall under any current category that is regulated. Takaichi affirmed that the problem will have to be discussed among each party or group in order to find the best solutions for it.
Obviously, some laws will need to be created in the country in order to help. At the moment, they don’t exist because the assets were not popular enough, but a clear problem arises when the minister talks about the issue because it highlights how easy it is to use cryptos for unlimited donations.
Crypto payments are legalized in Japan since 2017. They were formalized at the same time that the government decided that crypto exchanges had to upgrade their compliance measures. Despite having a somewhat pro-crypto industry, Japan has been clearly making an effort to regulate it.
The local industry is heavily regulated by the Financial Services Agency (FSA) and no new exchanges were opened since 2018 despite over a hundred of them seeking regulatory approval.