• The California Fair Political Practices Commission (FPPC) has updated its campaign disclosure manuals to include disclosure requirements for cryptocurrency contributions.
• Cryptocurrency contributions are subject to applicable limits and must be made through U.S-based payment processors that use Know Your Customer (KYC) protocols to verify the identities of contributors.
• Committees that opt to solicit cryptocurrency donations must ensure that the respective payment processor is registered with the U.S Department of Treasury and Financial Crimes Enforcement Network, and uses KYC procedures to verify the identity of contributors.
California FPPC Updates Campaign Disclosure Manuals
The California Fair Political Practices Commission (FPPC) has released updates to its campaign disclosure manuals, including detailed rules for cryptocurrency contributions declarations. These revisions reflect recent changes in legislation and commission regulations, such as contribution limits, limited liability companies disclosure requirements, behested payment reporting, cryptocurrency contributions and advertising disclosure requirements.
Cryptocurrency Contributions Requirements
Political committees may now solicit a crypto contribution as a non-monetary contribution subject to specific requirements. Cryptocurrency contributions are subject to applicable limits and may not be accepted from foreign principals, lobbyists or anonymous sources. The committees also cannot directly receive cryptocurrency contributions through peer-to-peer transactions; rather they must be received through payment processors selected by the committee acting as a vendor on behalf of it.. An example outlines how a political party would disclose the amount of a cryptocurrency contribution when receiving donations this way.
Know Your Customer Protocols
Committees that opt to solicit contributions in cryptocurrencies are expected to confirm that respective cryptocurrency payment processors use Know Your Customer (KYC) procedures to verify contributors’ identities. These payments must be made and received through United States-based payment processors registered with the U.S Department of Treasury and the Financial Crimes Enforcement Network, which use KYC protocols in order to authenticate donor identities before approving payments.
Disclosure Requirements
The commission requires committees receiving crypto donations to collect information including name, address, occupation and employer of respective contributors within 24 hours after receiving them; these details should then be shared with campaigns for official documents like expenditure reports etc., in order for accurate recording of funds raised/spent during campaigns or other political activities..
Conclusion
In conclusion, The FPPC’s updated guidelines provide clear instructions on how political committees can accept crypto donations without violating current regulations or compromising security standards set by regulatory bodies related financial crime prevention policies like KYC protocols etc..