Elections Canada, the country’s election agency recently invited political parties to present their views on how to handle the use of cryptos in political fundraising. According to an iPolitics report, Elections Canada has requested political parties to submit their views on the matter. This sudden spike in interest is because the election agency is preparing for elections in the next couple of months. The political parties in the country can submit their views by Jan.21.
The Interpretation Note
The election body also issued an explanatory note that will provide guidance to political parties on accepting crypto funds. The interpretation note will also guide them on conducting transactions crypto.
The Elections Canada further reported that this is being done on the request of the political class. The interpretation note will be updated once the election body receives comments from political entities and other political parties.
The interpretation note also addresses some questions on how different amounts of crypto funds should be handled. For example, the contributions made by using privacy coins like Monero and Zcash is not very ideal. The funds of over $200 will require political entities to report name and account of donator in the financial returns.
The electoral body of Canada has set the cap on private crypto contributions at $20. If a party receives more than $20, they should pay the commercial value of fund by check to the agency. The political parties should do this before making the purchase for their election-related expenses.
As per the note, If the purchase is not related to elections, then that party can buy services and property directly by using cryptocurrency. However, the Elections agency has all the reasons to be proactive. As the Bank of Canada last year calculated that crypto ownership in the North American nation had risen by 72% from 2016. The study revealed that five percent of Canadian citizens owned bitcoin, rise from a figure of 2.9% since 2016.