On 9th January ’19, the news had come out that the Electoral Body of Canada, Elections Canada, had published a draft document which had the procedure for the acceptance of crypto donations and the acceptance of seeking the input of various parties concerning the efficient handling of such donations. One of the confusing parts of crypto assets and governments is the political donations issue. In Taiwan, crypto assets have received acceptance in the form of contributions through campaigns. In some towns of the United States, these have received a total ban.
The government of Canada has been exploring the uses of crypto assets for political donations ahead of its upcoming elections. Elections Canada is the official electoral body of Canada which has been given the task of handling political fundraising in the nation. Elections Canada has announced on its website,
“With interest in cryptocurrency on the rise, political entities have requested guidance on accepting contributions and conducting other transactions in bitcoin or altcoins.”
To answer all the inquiries which Election Canada has received, the body has published a draft document which states how crypto asset transactions are to be handled as of now. According to the document,
“Cryptocurrency donations are classified as non-monetary and in-kind donations.”
The main reason for this, according to the document is that crypto assets have the characteristics of money as well as that of property. Just like money, crypto assets can be used for the buying and selling of goods and services but unlike money, crypto assets cannot be put into a bank account without being exchanged for fiat currency which brings crypto assets near to property standards.
As of now the document is just a draft document and several parties have been in contact regarding the issue and they have time till 21st January ‘19, to submit their thoughts on how crypto assets should be handled and how the document might have alterations with time for the betterment in handling of crypto assets for issues of political donations. Some jurisdictions and government bodies have however decided to consider their own classification for crypto assets. The U.S Federal Election Commission, Elections BC and the Canada Revenue Agency deal with crypto assets as a commodity. Elections Ontario deals with crypto asset transactions as the transactions done through credit card or cheque.