Japanese Ministry of Internal Affairs and Communications: Using virtual currency to make donations to politicians is legal

On October 5th, the Japanese Ministry of Internal Affairs and Communications said that it is not illegal to use virtual currency to make donations to politicians. Japan’s Political Capital Law is in principle prohibiting donations to politicians, but virtual currency is not in the category of “money and securities” prohibited by law. In this regard, Professor Yoshii Iwai of the University of Japan commented that “the current law cannot keep up with the changes in the trend of the times”. He further said: "Political donations through crypto assets can be expected to participate in the political effect of a young-centric user group. But encrypted assets can be easily fulfilled, and if not disclosed will violate the concept of ensuring transparency."